As a general rule, society should provide a public good until that point at which the marginal benefit to society of having one more unit produced is __________________ the marginal cost of the good

Question

Quizplus · Accepted Answer

When the marginal benefit of producing one more unit of a public good is equal to the marginal cost of producing that unit, society is allocating its resources efficiently. This is because any additional units produced would cost more than the additional benefits they would bring, implying that society would be better off by not producing them. Therefore, society should provide a public good until the point at which the marginal benefit to society of having one more unit produced is equal to the marginal cost of the good.

As a General Rule, Society Should Provide a Public Good