Answer to Question #277208 in Microeconomics for Stacy

Question

Is it true that optimal provision of public good is not possible if social marginal cost is equal to social marginal cost

Answer 1

Yes, in terms of consumption, it is non-excludable and non-rival. There are two types of public goods: pure and impure. Pure public goods are those that are perfectly non-rivalrous and non-excludable in terms of consumption.