Equilibrium for public goods is characterized by
A)MC = MB.
B)SMB = SMB.
C)MRS1 + MRS2 + MRS3 + … + MRSn = MRT.
D)SMC = MRT.

Name: Equilibrium for public goods is characterized by A)MC = MB. B)SMB = SMB. C)MRS1 + MRS2 + MRS3 + … + MRSn = MRT. D)SMC = MRT.
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Question

Quizplus · Accepted Answer

The equilibrium for public goods is characterized by the sum of the marginal rates of substitution (MRS) of all individuals being equal to the marginal rate of transformation (MRT), reflecting the collective valuation of the good.

Equilibrium for Public Goods Is Characterized by