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 horizontal sum of the consumer benefits of the good should equal the marginal cost of producing the good.
C. the marginal benefit of the consumer who values the good most should equal the marginal cost of the good.
D. the sum of the marginal benefit of each consumer at a given output equals the marginal cost of the good.


Answer: D

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