The Optimal Quantity of a Public Good Occurs Where the Marginal

question 22

True/False

The optimal quantity of a public good occurs where the marginal benefit of the citizen who has the highest preference for the good just equals the good's marginal cost.

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Definitions:

United States Environmental Protection Agency

A federal agency tasked with protecting human health and the environment by enforcing regulations based on laws passed by Congress.

Private Costs

Costs that are directly borne by the individuals or organizations engaging in an economic activity, excluding external effects.

Intangible Benefits

Advantages or benefits of a product, service, or project that are not easily quantified in monetary terms, such as brand recognition or customer loyalty.

Environmental Sustainability

The responsible interaction with the environment to avoid depletion or degradation of natural resources, ensuring long-term ecological balance.