The Efficient Quantity of a Public Good Is the Quantity

question 59

Multiple Choice

The efficient quantity of a public good is the quantity at which marginal benefit is

• A) greater than marginal cost by any amount.
• B) less than marginal cost.
• C) equal to marginal cost.
• D) zero.
• E) greater than marginal cost by the maximum amount.

---

Definitions:

Automobile Industry

A global sector that involves the manufacturing, marketing, and selling of motor vehicles.

Advertising

The action of calling public attention to products, services, needs, etc., especially by paid announcements in print, broadcast, or online media.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, allowing for some degree of market power.

Market Structure

The organization and characteristics of a market, including the number and size of firms, product differentiation, and entry and exit barriers.