The Samuelson Condition for the optimal provision of public goods requires that the sum of individual marginal rates of substitution (MRS) equals:

AThe average cost of production

BTotal consumer surplus

CThe Marginal Rate of Transformation (MRT)

DZero

Explanation

For public goods, Pareto efficiency is achieved when ∑MRS = MRT (the sum of marginal benefits equals marginal social cost).

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