Rational ignorance about the efficient quantity of a public good can result in
A) excludable goods.
B) the vertical summation of individual's marginal benefit curves.
C) the principle of minimum differentiation.
D) bureaucratic overprovision of a good.

Question

Quizplus · Accepted Answer

Rational ignorance occurs when individuals choose not to become informed about certain issues because the cost of doing so outweighs the benefits. In the context of public goods, this can lead to bureaucratic overprovision because decision-makers may not have accurate information about the efficient quantity desired by the public, leading to overproduction.

Rational Ignorance About the Efficient Quantity of a Public Good