At the optimal quantity of a public good,
A)marginal benefit exceeds marginal cost by the greatest amount.
B)total benefit equals total cost.
C)marginal benefit equals marginal cost.
D)marginal benefit is zero.

Question

Quizplus · Accepted Answer

At the optimal quantity of a public good, the marginal benefit equals the marginal cost. This principle ensures that resources are allocated efficiently, maximizing societal welfare.

At the Optimal Quantity of a Public Good