The Efficient Quantity of a Public Good Is

question 134

Multiple Choice

The efficient quantity of a public good is

• A) the quantity produced by private firms.
• B) the quantity at which the marginal benefit equals the marginal cost.
• C) impossible to determine because each person's marginal benefit is different.
• D) the quantity at which the marginal benefit exceeds the marginal cost by as much as possible.
• E) the quantity determined by the intersection of the demand curve and the supply curve.