Which of the Following Represents an Efficient Quantity of a Public

question 42

Multiple Choice

Which of the following represents an efficient quantity of a public good? The quantity at which the

• A) marginal cost of production is minimized.
• B) number of free riders is maximized.
• C) marginal benefit minus marginal cost is minimized.
• D) marginal benefit is equal to the marginal cost.
• E) marginal benefit exceeds the marginal cost by the maximum amount possible.

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Definitions:

Title

Legal term for the formal right of ownership of property.

Future Goods

Future goods are goods that are to be manufactured, produced, or acquired by the seller after the making of a contract of sale.

Risk of Loss

The potential for an investment or transaction to result in a decrease in value or financial loss.

Identified

Recognized or established as being a particular entity or thing.