multiple choice question\nhow can the optimal quantity of a public good be produced?\nby producing at a…

multiple choice question\nhow can the optimal quantity of a public good be produced?\nby producing at a level in which marginal cost and marginal benefit are equal\nby producing at a level in which marginal benefit exceeds marginal cost\nby producing at a level in which marginal costs are zero\nby producing at a level in which marginal cost exceeds marginal benefit\nneed help? review these concept resources.\nread about the concept

multiple choice question\nhow can the optimal quantity of a public good be produced?\nby producing at a level in which marginal cost and marginal benefit are equal\nby producing at a level in which marginal benefit exceeds marginal cost\nby producing at a level in which marginal costs are zero\nby producing at a level in which marginal cost exceeds marginal benefit\nneed help? review these concept resources.\nread about the concept

Answer

Brief Explanations:

In economic theory, for any good (including public goods), the optimal production level is achieved when marginal cost equals marginal benefit. Producing at a level where marginal benefit exceeds marginal cost means more can be gained by producing more, and vice - versa when marginal cost exceeds marginal benefit. Producing where marginal cost is zero is not a general rule for optimality.

Answer:

By producing at a level in which marginal cost and marginal benefit are equal