The Efficient Scale of Provision of a Public Good Occurs

question 34

Multiple Choice

The efficient scale of provision of a public good occurs where

• A)total benefit is at a maximum.
• B)total benefit is at a minimum.
• C)marginal social benefit is at a maximum.
• D)marginal social benefit minus marginal social cost equals zero.
• E)marginal social cost is at a minimum.

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Definitions:

Common-Size Percentages

Financial analysis tool that converts each line item of financial statements into a percentage of a common base figure to allow for easy comparison.

Balance Sheets

Financial statements that show a company's financial position, detailing assets, liabilities, and equity at a specific point in time.

Inventory Turnover

A ratio indicating how many times a company's inventory is sold and replaced over a period.

Days' Sales In Inventory

A financial ratio that measures the average number of days a company takes to sell its inventory.