The diagram below shows the marginal benefit and marginal cost of a public good.This economy has 3 individuals,A,B and C.The diagram shows the MB for each individual and a summation of their marginal benefits.
FIGURE 16- 4
-Refer to Figure 16- 4.Once some quantity of this public good is provided,the efficient price to charge for its use is

Question

The diagram below shows the marginal benefit and marginal cost of a public good.This economy has 3 individuals,A,B and C.The diagram shows the MB for each individual and a summation of their marginal benefits.
  FIGURE 16- 4
-Refer to Figure 16- 4.Once some quantity of this public good is provided,the efficient price to charge for its use is

Quizplus · Accepted Answer

Public goods are non-excludable and non-rivalrous, meaning that once provided, the efficient price to charge for their use is typically zero to ensure maximum accessibility and utilization without excluding anyone.

The Diagram Below Shows the Marginal Benefit and Marginal Cost