Answer :

The government can provide the efficient amount of a public good by adhering to marginal benefit equals marginal cost rule that is MB=MC.

Marginal benefit is the amount by which an additional unit of labor increases its total utility. The amount that extra french fries increase your satisfaction, or the extra revenue the company expects to bring in by hiring another employee.

Marginal cost is the amount by which an additional unit of labor increases total cost. You will pay more for the size of your McDonald's order; The company's labor costs will rise when it hires another worker.

The reason why we want marginal benefit to be equal to marginal cost is due to the fact that marginal cost and benefits are not constant as they are produced or consumed.

This idea of ​​diminishing marginal benefits, and increasing value can be revisited by looking at the past that compares the law of demand (for marginal benefits) and the law of supply (for marginal costs).  What we ended up with was to draw the following diagram that represents the relationship.

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