Suppose the Government Is Producing a Public Good

question 172

Multiple Choice

Suppose the government is producing a public good.If the marginal benefit of the last unit of a public good produced is greater than the marginal cost of that unit,to achieve the efficient amount of production,what should be done?

• A) The government should produce more units.
• B) The government should cease production.
• C) Private firms should take over the production and sale of the good.
• D) Nothing, because the government is already producing the efficient quantity of the public good.
• E) The government should produce fewer units.

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Definitions:

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The office or station of the Royal Canadian Mounted Police, Canada's federal and national police service.

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Secondary Group

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