Question

A voucher can eliminate the deadweight loss and lead to an efficient outcome if the value of the voucher equals the ________ of the good.

A) marginal external benefit
B) marginal social benefit
C) marginal private benefit
D) marginal social cost
E) marginal external cost

Answer 1

A voucher can eliminate the deadweight loss and lead to an efficient outcome if the value of the voucher equals the marginal social cost of the good.

Step-by-step explanation:

A voucher can eliminate the deadweight loss and lead to an efficient outcome if the value of the voucher equals the marginal social cost of the good. The marginal social cost represents the cost to society from producing the last unit of a good. If the value of the voucher is equal to the marginal social cost, it means that the voucher covers the cost to society of producing the good, resulting in an efficient outcome.