The socially optimal level of provision of a public good is where the
A) marginal cost of the output is equal to the vertical sum of the individual demand curves.
B) marginal cost of the output is equal to the horizontal sum of the individual demand curves.
C) marginal cost of the output is equal to the sum of the market's marginal benefit.
D) market price of the output is equal to the vertical sum of the individual demand curves.
E) market price of the output is equal to the vertical sum of all the market demand curves.
Correct Answer:
Verified
Q65: Suppose that Scott's demand for a public
Q66: The judicial system is an example of
Q67: The reason the demand curve for a
Q68: Assume that there is no way to
Q69: Suppose that Scott's demand for a public
Q71: If market demand for a public good
Q72: When a negative externality is present in
Q73: Government subsidizes education because
A) it is a
Q74: In Canada,support for public schooling was partly
Q75: If voters A,B,and C have the following
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents