The Optimal Output of a Public Good Occurs Where

question 27

Multiple Choice

The optimal output of a public good occurs where

• A)The total cost of the good equals the cumulated benefits of all consumers
• B)The sum of the marginal benefit of each consumer at a given output equals the marginal cost of the good
• C)The marginal benefit of the consumer who values the good most should equal the marginal cost of the good
• D)The horizontal sum of the consumer benefits of the good should equal the marginal cost of producing the good

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Definitions:

Reinforcement

A strategy to cultivate desirable behavior by either bestowing positive consequences or withholding negative consequences.

Mentoring

A work relationship that encourages development and career enhancement for people moving through the career cycle.

Positive Reinforcement

A behavioral strategy that involves rewarding a behavior to increase the likelihood of that behavior being repeated.

Observational Learning

The process of acquiring new behaviors or knowledge by watching and imitating others.