Efficient production of a public good requires:
a. that individuals pay for such goods according to benefits received.
b. that each individual's MRS be equal to the RPT of public goods for private goods.
c. that the sum of individuals' MRSs be equal to the RPT of public goods for private goods.
d. that governments produce at the low point of the average cost curve for the public good.
c
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Which of the following can occur if price controls are imposed on a product?
A. Persistent shortages B. Illegal markets C. Illicit channels of distribution D. Industry investment slows or stops E. All of these responses are correct.
When estimating GDP, changes in the level of inventory are calculated because:
a. it indicates the level of employment in the economy. b. it provides information about a firm's expectations. c. it is a good indicator of the competitiveness of the economy. d. it shows the level of business spending by firms. e. it determines the value of goods produced in a year but not sold in that year.
The price elasticity of supply of tomatoes on the market day is zero
Indicate whether the statement is true or false
“Monopolists are not technologically competitive.” Explain
What will be an ideal response?