The outcome from a voucher scheme is efficient when the government makes the value of the voucher equal to
A)marginal external cost.
B)marginal external benefit.
C)private external cost.
D)private external benefit.
E)marginal social cost.

Question

Quizplus · Accepted Answer

The voucher should equal the marginal external benefit to ensure that the social benefit is maximized and the market outcome is efficient.

The Outcome from a Voucher Scheme Is Efficient When the Government