At the optimal level of public goods provision, society's total willingness to pay per unit is equal to the marginal cost of producing the good.

Question

Quizplus · Accepted Answer

At the optimal level of public goods provision, the sum of individuals' marginal willingness to pay for one more unit of the good equals the marginal cost of producing that unit, ensuring that resources are allocated efficiently.

At the Optimal Level of Public Goods Provision, Society's Total