To Determine the Efficient Quantity of a Public Good to Supply

question 118

Multiple Choice

To determine the efficient quantity of a public good to supply,

• A) the private firms that will produce the good each produce the exact same quantity.
• B) marginal benefit and marginal cost are equated, the same as is done to determine the efficient quantity of a private good.
• C) total benefit is equated to total cost, the same as is done to determine the efficient quantity of a private good.
• D) politicians use the principle of maximum differentiation.
• E) marginal benefit must exceed marginal cost by as much as possible.

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Definitions:

Specific Payee

The designated individual or entity to whom a particular payment is directed or made.

Definite Time

A specific, clearly identified period or moment when something occurs or is scheduled to happen.

Drawer And Drawee

Terms in check transactions where the drawer is the party that writes the check, and the drawee is the bank that is requested to pay the amount.

Functions

Refers to the roles, activities, or duties that are intended or expected to be performed by a person, system, or object.