The diagram below shows the marginal benefit and marginal cost of a public good.This economy has 3 individuals,A,B and C.The diagram shows the MB for each individual and a summation of their marginal benefits. FIGURE 16-4
-Refer to Figure 16-4.Once some quantity of this public good is provided,the efficient price to charge for its use is

Question

The diagram below shows the marginal benefit and marginal cost of a public good.This economy has 3 individuals,A,B and C.The diagram shows the MB for each individual and a summation of their marginal benefits.  FIGURE 16-4
-Refer to Figure 16-4.Once some quantity of this public good is provided,the efficient price to charge for its use is

Quizplus · Accepted Answer

The efficient price to charge for the use of a public good, once it is provided, is approximately zero because public goods are non-rivalrous and non-excludable, meaning that one person's use does not reduce availability to others and it is not feasible to exclude anyone from using it.

The Diagram Below Shows the Marginal Benefit and Marginal Cost