If the marginal social cost of producing a public good is greater than the marginal social benefit,then
A)more than the efficient quantity of the public good is being produced.
B)less than the efficient quantity of the public good is being produced.
C)the efficient quantity of the public good is being produced.
D)the public good is being produced by a private firm.
E)the public good must be a common resource.

Question

Quizplus · Accepted Answer

When the marginal social cost of producing a public good exceeds the marginal social benefit, it indicates that resources are being overallocated to the production of that good, leading to production beyond the efficient quantity.

If the Marginal Social Cost of Producing a Public Good