Which of the following statements about the provision of public goods is true?

Question

Quizplus · Accepted Answer

The optimal level of provision of public goods is defined as the point at which the marginal benefit equals the marginal cost. If the marginal benefit is greater than the marginal cost, then it is efficient to increase the provision of the public good. Therefore, statement C is true. Statements A, B, and D are false. While the government often provides public goods, it is not always required to do so. The optimal level of provision is not necessarily the level at which all taxpayers receive some of the good, and it is not necessarily when total benefits equal total costs.

Which of the Following Statements About the Provision of Public