Asked by
Danah Mongan
on Oct 26, 2024Verified
No individual is willing to pay to provide the efficient level of a public good since the:
A) marginal cost of production is zero.
B) good will be nonrival and thus underconsumed.
C) individual's marginal benefit is less than the marginal social benefit.
D) marginal benefit of allowing one more individual to consume the good is zero.
Public Good
A good that is non-excludable and non-rival in consumption, meaning no one can be prevented from using it and one person's use does not reduce availability to others.
Marginal Social Benefit
The additional benefit to society from producing one more unit of a good or service.
Marginal Benefit
The bonus satisfaction or benefit gained by consuming one more unit of a good or service.
- Acquire knowledge on how the presence of free-riders influences the distribution of public goods.
Verified Answer
JC
Learning Objectives
- Acquire knowledge on how the presence of free-riders influences the distribution of public goods.