The Efficient Output Level of a Public Good Occurs Where

question 118

Multiple Choice

The efficient output level of a public good occurs where the

• A)greatest number of free riders occurs.
• B)marginal social cost of producing the last unit is equal to the marginal social benefit realized by consumers.
• C)total cost of production is affordable.
• D)marginal cost of production is minimized.

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Definitions:

Original Capital

The initial amount of money invested in a business by its owners or shareholders to start and operate the enterprise.

Net Loss

The financial condition indicating that a company's total expenses exceed its revenues over a specific period.

Share of Income

This refers to an individual's or entity's portion of income earned by a business or investment, typically expressed as a percentage of total profits.

Capital Totaling

The sum of an entity's financial resources, including equity, debt, and other financial instruments, used to fund its operations and investments.