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 benefit
B) marginal social benefit
C) marginal private benefit
D) marginal social cost

Question

Quizplus · Accepted Answer

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

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