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 characterized by non-excludability and non-rivalry, meaning that once they are provided, additional users can use the good without additional costs. Therefore, the efficient price to charge for its use is approximately zero, as charging more would prevent some users from benefiting from the good without saving any costs.

The Diagram Below Shows the Marginal Benefit and Marginal Cost