The efficiency condition in the production of pure public good requires that the production be carried out up to a point when:
{where MBi represents Marginal Benefit of the 'ith' individual and MBj represents Marginal Benefits that accrue to the 'jth' individual and MC is the marginal cost}
1
\(M{B_i} + \sum\limits_{j = 1}^{n - 1} {M{B_j}} = MC\)
2
\(M{B_i} + \sum\limits_{j = 1}^{n - 1} {M{B_j}} > MC\)
3
\(M{B_i} - \sum\limits_{j = 1}^{n - 1} {M{B_j}} < MC\)
4
\(M{B_i} - \sum\limits_{j = 1}^{n - 1} {M{B_j}} > MC\)