The Efficient Output Level of a Public Good Occurs Where

question 248

Multiple Choice

The efficient output level of a public good occurs where the

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

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Definitions:

Investment Account

A financial account held by an investment dealer that enables individuals to purchase securities such as stocks, bonds, and mutual funds.

Annually

Happening annually.

EAR

The Effective Annual Rate, a measurement of interest that takes into account the effect of compounding over the period of time it is applied.

Compounded Monthly

The process of calculating interest on an initial principal, which also includes all of the accumulated interest from previous periods on a loan or investment, with the compounding occurring on a monthly basis.