In order to determine what quantity of a public good should be supplied governments sometimes use

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Cost-benefit analysis is a common method used by governments to determine the optimal quantity of a public good to be supplied. It involves comparing the total costs of producing the good with the total benefits it provides to society, taking into account factors such as efficiency, equity, and sustainability. By weighing the costs and benefits of different levels of production, policymakers can identify the quantity of the public good that maximizes net social welfare. Quantitative analysis, economic forecasting, and econometrics may also be used in this process, but cost-benefit analysis is typically the most comprehensive and transparent approach.

In Order to Determine What Quantity of a Public Good