The efficient level of provision of a public good is the level at which its marginal social benefit is equal to the marginal cost of its production.False

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This statement is true. The efficient level of provision of a public good is the level at which its marginal social benefit (MSB) is equal to its marginal cost (MC). At this level, the total social welfare, which is the sum of the consumer surplus and producer surplus, is maximized. Any level of provision below the efficient level would result in an under-provision of the public good, while any level above the efficient level would result in an over-provision.

The Efficient Level of Provision of a Public Good Is