Explain the relationship between marginal utility of public goods and collective decision-making.

Explain the relationship between marginal utility of public goods and collective decision-making.

The relationship between marginal utility of public goods and collective decision-making is that collective decision-making is necessary to determine the allocation and provision of public goods based on their marginal utility. Public goods are non-excludable and non-rivalrous, meaning that they are available to all individuals and one person's consumption does not diminish the availability for others. Therefore, the marginal utility of public goods is determined by the collective preferences and needs of society. Collective decision-making processes, such as voting or government policies, are used to assess the marginal utility of public goods and make decisions on their production and distribution. The goal is to allocate public goods in a way that maximizes overall societal welfare and ensures that resources are allocated efficiently.