Consider an ordinary rivalrous good,provided in a competitive market.At the socially optimal level of provision of this good,the marginal

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Quizplus · Accepted Answer

At the socially optimal level of provision of a rivalrous good, the marginal cost of production of the last unit of the good is equal to the consumers' marginal willingness to pay. This is because the goal of the market is to allocate resources efficiently, and the socially optimal level is where the marginal cost equals marginal benefit (the consumers' willingness to pay). Therefore, choice A is correct.

Consider an Ordinary Rivalrous Good,provided in a Competitive Market