In the context of public economics, the 'Samuelson Condition' for optimal provision of pure public goods states that:
A. Only the median voter determines the quantity
B. The sum of marginal rates of substitution equals the marginal rate of transformation
C. Each individual's marginal rate of substitution equals the marginal cost
D. Private provision is always optimal
Answer: Option B
Solution (By JKSSB Mock Tests)
The Samuelson condition requires that the sum of the marginal rates of substitution between the public good and a private good across all individuals equals the marginal rate of transformation (marginal cost).
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