-The above figure shows the marginal benefit and marginal cost curves for a public good. The quantity that has the best prospect of winning in an election by well-informed voters is
A) A.
B) B.
C) C.
D) zero units supplied.

Question

-The above figure shows the marginal benefit and marginal cost curves for a public good. The quantity that has the best prospect of winning in an election by well-informed voters is
A) A. 
B) B. 
C) C. 
D) zero units supplied.

Quizplus · Accepted Answer

The quantity at point B is where the marginal benefit equals the marginal cost, which is the efficient quantity that voters would likely support.

-The Above Figure Shows the Marginal Benefit and Marginal Cost