πŸ“’ Too many exams? Don’t know which one suits you best? Book Your Free Expert πŸ‘‰ call Now!

  • google app store apple app store
  • βœ–

      Question

      The optimal quantity of the Public good to be produced

      is given by
      A Any point on the marginal social benefit curve Correct Answer Incorrect Answer
      B Any point on the marginal social cost curve Correct Answer Incorrect Answer
      C Marginal Social benefit = Marginal Social Cost Correct Answer Incorrect Answer
      D Marginal Social benefit > Marginal Social Cost Correct Answer Incorrect Answer

      Solution

      For public goods, the demand curve is the marginal social benefit curve and the supply curve is the marginal social cost curve. The optimal quantity of the Public good to be produced is given by MSB=MSC.

      Practice Next
      ask-question