Asked by Hayfaa Aljaddah on May 12, 2024
Verified
At the optimal level of public goods provision, society's total willingness to pay per unit is equal to the marginal cost of producing the good.
Optimal Level
The most favorable or efficient level of output or activity under given conditions, maximizing benefits or minimizing costs.
Public Good
A good that is non-excludable and non-rivalrous, meaning it can be used by everyone and one person's use does not diminish another's.
- Describe the idea of the perfect provisioning level for goods available to the public.
Verified Answer
KF
KaCee FrenchMay 17, 2024
Final Answer :
True
Explanation :
At the optimal level of public goods provision, the sum of individuals' marginal willingness to pay for one more unit of the good equals the marginal cost of producing that unit, ensuring that resources are allocated efficiently.
Learning Objectives
- Describe the idea of the perfect provisioning level for goods available to the public.
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