Asked by Grant Messenger on Apr 27, 2024
Verified
To find the optimal level of provision for a public good, the government must know
A) the marginal revenue of selling the good.
B) the supply curve of the government.
C) everyone's preferences.
D) the price elasticity of demand of each buyer.
Optimal Level
Optimal Level refers to the most efficient, beneficial, or profitable position or state for a particular process, activity, or economic outcome.
Public Good
A good that is non-excludable and non-rivalrous, meaning it is accessible to all and one individual's use does not diminish its availability to others.
Preferences
Individual choices or prioritizations that indicate the degree of personal satisfaction or value someone derives from various options.
- Understand the situations where the allocation of public goods is ideal, along with the government's involvement.
- Comprehend the techniques used in consolidating individual demands to establish the market demand for public goods.
Verified Answer
Learning Objectives
- Understand the situations where the allocation of public goods is ideal, along with the government's involvement.
- Comprehend the techniques used in consolidating individual demands to establish the market demand for public goods.
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