Which of the Following Represents an Efficient Quantity of a Public

question 86

Multiple Choice

Which of the following represents an efficient quantity of a public good?

• A) the quantity at which the marginal cost of production is minimized
• B) the quantity at which the number of free riders is maximized
• C) the quantity at which the marginal benefit minus marginal cost is minimized
• D) the quantity at which the marginal benefit is equal to the marginal cost
• E) the quantity at which the marginal benefit exceeds the marginal cost by the maximum amount possible