Multiple Choice
The optimal output of a public good occurs where
A) the total cost of the good equals the cumulated benefits of all consumers.
B) the sum of the marginal benefit of each consumer at a given output equals the marginal cost of the good.
C) the marginal benefit of the consumer who values the good most should equal the marginal cost of the good.
D) the horizontal sum of the consumer benefits of the good should equal the marginal cost of producing the good.
Correct Answer:

Verified
Correct Answer:
Verified
Q18: Which of the following goods is nondiminishable?<br>A)City
Q19: A new fad dramatically increases the demand
Q20: Attempts to lobby the government for private
Q21: Each year around July 4 the town
Q22: Give an example of a case where
Q24: Which of the following is the best
Q25: The best example of a public good
Q26: If voters are rational, they are more
Q27: Say 6 homogenous consumers have individual willingness
Q28: Suppose Congress consists of 5 people who