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Private Provision of Public Goods

Question 26

Multiple Choice

Private provision of public goods


A) fails because the private firm will always go broke.
B) succeeds because public provision is often more costly.
C) succeeds if consumers expect to obtain a benefit from the consumption of the public good.
D) fails because of the free-rider problem.
E) fails because private firms generally charge higher prices than public firms,and therefore lose customers.

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