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 this good is zero.
B)cost of production of the last unit of the good is equal to the consumers' marginal willingness to pay.
C)sacrifice society needs to make to supply the last unit of the good is more than each consumer's marginal willingness to pay.
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 all consumers' combined marginal willingness to pay.

Question

Quizplus · Accepted Answer

At the socially optimal level of provision for a non-rivalrous good like national defense, the marginal cost of production of the last unit should equal the combined marginal willingness to pay of all consumers, ensuring efficient allocation of resources.

Consider a Non-Rivalrous Good,like National Defence,provided by the Government