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If at the Quantity Determined by Private Costs and Benefits,the

Question 38

Multiple Choice

If at the quantity determined by private costs and benefits,the marginal social benefit of a public good is greater than the marginal social cost of providing the good:


A) the private market will best determine how much of the good will be provided and to whom.
B) a community would be better off if provision of the good were to increase.
C) the community will not provide the good.
D) free riding will not occur,so the private market will provide the socially optimal amount.

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