Where does the efficient output level of a public good occur?

Question

Quizplus · Accepted Answer

The efficient output level of a public good occurs where the marginal cost of producing the last unit is equal to the marginal benefit realised by consumers. This is because at this point, resources are allocated efficiently and there is no further need to produce additional units. Choices A, C, and D are incorrect as they do not represent the most efficient point of production for a public good.

Where Does the Efficient Output Level of a Public Good