Vouchers create the efficient outcome only if production is such that the marginal social cost
A) exceeds the marginal private benefit.
B) equals the marginal external benefit.
C) equals the marginal social benefit.
D) is decreased so it equals the marginal private cost.

Question

Quizplus · Accepted Answer

Vouchers create an efficient outcome when the marginal social cost equals the marginal social benefit, ensuring that resources are allocated optimally and externalities are accounted for.

Vouchers Create the Efficient Outcome Only If Production Is Such