Consider a non- rivalrous good,like national defence,provided by the government.At the socially optimal level of provision of this good,the marginal
A) cost of production of the last unit of the good is equal to all consumers' combined marginal willingness to pay.
B) sacrifice society needs to make to supply the last unit of the good is more than each consumer's marginal willingness to pay.
C) cost of production of this good is zero.
D) cost of production of the last unit of the good is more than all consumers' combined marginal willingness to pay.
E) cost of production of the last unit of the good is equal to the consumers' marginal willingness to pay.
Correct Answer:
Verified
Q23: Private markets will always provide too few
Q24: FIGURE 16- 1 Q25: Economists use the term "market failure" to Q26: The diagram below shows demand and supply Q27: The efficient price to charge consumers for Q29: Which of the following is the best![]()
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