For many pure public goods like fireworks displays,weather forecasts,and television broadcasts the marginal cost of serving one more consumer is ____,and therefore the optimal quantity occurs when _______.

Question

Quizplus · Accepted Answer

For pure public goods, the marginal cost of serving an additional consumer is zero because one person's consumption does not reduce availability to others. The optimal quantity is where marginal benefit equals zero, as it indicates that the good is provided to the point where no additional benefit is gained from serving more consumers.

For Many Pure Public Goods Like Fireworks Displays,weather Forecasts,and Television