Refer to the provided supply and demand graph for a public good. If Q1 units of the public good are produced, then
A) users are willing to pay more for the public good than it costs to produce it.
B) users are willing to pay less for the public good than it costs to produce it.
C) there is an overallocation of resources toward producing this public good.
D) allocative eﬃciency is achieved in the market.

Question

Refer to the provided supply and demand graph for a public good. If Q1 units of the public good are produced, then
A) users are willing to pay more for the public good than it costs to produce it. 
B) users are willing to pay less for the public good than it costs to produce it. 
C) there is an overallocation of resources toward producing this public good. 
D) allocative eﬃciency is achieved in the market.

Quizplus · Accepted Answer

The Answer of  Refer to the provided supply and demand graph for a public good. If Q1 units of the public good are produced, then
A) users are willing to pay more for the public good than it costs to produce it. 
B) users are willing to pay less for the public good than it costs to produce it. 
C) there is an overallocation of resources toward producing this public good. 
D) allocative eﬃciency is achieved in the market.

Refer to the Provided Supply and Demand Graph for a Public