Where Does the Efficient Output Level of a Public Good

question 72

Multiple Choice

Where does the efficient output level of a public good occur?

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

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Definitions:

Original Cost

The purchase price of an asset or investment, including all expenses incurred to get the asset ready for its intended use.

Balance Sheet

A financial statement that summarizes a company’s assets, liabilities, and shareholders' equity at a specific point in time.

Pay Period

The interval of time for which employee wages are calculated and paid, such as weekly, biweekly, monthly.

Dorsiflexion

The backward bending or lifting of the foot at the ankle, moving the toes closer to the shin.