Identify the correct statement.
A)The marginal cost of producing a public good is zero.
B)Any good that is provided by the government can be considered as a public good.
C)A public good is often under consumed as supply usually exceeds demand.
D)The consumers of a public good tend to underestimate the value of the good.

Question

Quizplus · Accepted Answer

Consumers of a public good may underestimate its value because they do not directly pay for it, leading to potential underfunding or underprovision by the government.

Identify the Correct Statement