The optimal quantity of a public good occurs where the marginal benefit of the citizen who has the highest preference for the good just equals the good's marginal cost.

Name: The optimal quantity of a public good occurs where the marginal benefit of the citizen who has the highest preference for the good just equals the good's marginal cost.
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Question

Quizplus · Accepted Answer

The optimal quantity of a public good occurs where the sum of the marginal benefits of all citizens equals the marginal cost, not just the highest preference.

The Optimal Quantity of a Public Good Occurs Where the Marginal