A voucher can eliminate the deadweight loss and lead to an efficient outcome if the value of the voucher equals the ________ of the good.
A)marginal external cost
B)marginal social benefit
C)marginal private benefit
D)marginal social cost
E)marginal external benefit

Question

Quizplus · Accepted Answer

A voucher can eliminate deadweight loss and lead to an efficient outcome if its value equals the marginal external benefit, as it internalizes the positive externality, aligning private incentives with social benefits.

A Voucher Can Eliminate the Deadweight Loss and Lead to an Efficient