Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 16 - Public Finance: Expenditures and Taxes - Questions - Page 355: 3

Answer

Program B since the marginal benefit no longer exceeds marginal cost for programs that are larger in scope. Plan B is where net benefits—the excess of total benefits over total costs—are maximized.

Work Step by Step

Conceptual Question. No Work Needed.
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