Refer to the Above Supply and Demand Graph for a Public

question 150

Multiple Choice

Refer to the above supply and demand graph for a public good. Point c on the graph shows where the:

• A) Total benefit equals the total cost of the public good
• B) Marginal benefit equals the marginal cost of the public good
• C) Average benefit equals the average cost of the public good
• D) Total benefit of the public good is at the maximum