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3 Apr 2019

How does the marginal benefit for a public good compare to its marginal cost when: a. there is an under allocation of resources for the provision of the public good? b. there is an over allocation of resources for the provision of the public good? c. there is an optimal allocation of resources for the provision of the public good?

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Related questions

15. Suppose that the marginal benefit from another unit of a public good exceeds the marginal cost of producing it. Then

a. more of the product should be produced because its provision is less than the efficient level.

b. the net benefit from the product is at its maximum, but the provision of the product is not at its efficient level.

c. less of the product should be produced because its provision exceeds the efficient level.

d. the net benefit from the product is at its maximum, and its provision is at an efficient level.

25) Overproduction of a good means that A) marginal social benefit exceeds marginal social cost. B) marginal social cost exceeds marginal social benefit. C) this is a public good. D) deadweight loss has been eliminated. E) the sum of consumer surplus and producer surplus is greater than the sum for an efficient allocation.

10) Overproduction of a good means that A) this is a public good. B) deadweight loss has been eliminated. C) the sum of consumer surplus and producer surplus is greater than the sum for an efficient allocation. D) marginal social benefit exceeds marginal social cost. E) marginal social cost exceeds marginal social benefit

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