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Which of the Following Statements About the Provision of Public

Question 125

Multiple Choice

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


A) They should be provided to the point at which the marginal cost of production equals the maximum price any individual is willing to pay for that unit.
B) They should be provided to the point at which the marginal cost of production equals the highest marginal benefit from any individual consumer of the good.
C) They should be provided to the point at which the marginal cost of production equals zero.
D) They should be provided to the point at which the marginal cost of production equals the sum of the individual marginal benefits from all consumers of that unit.

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