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If Markets Underproduce Public Goods Because of the Free Rider

Question 185

Multiple Choice

If markets underproduce public goods because of the free rider problem,:


A) the price of the public good will increase.
B) total value in society will be minimized.
C) it may be more efficient for the government to tax individuals to pay for the production of the public good.
D) entrepreneurs will not be able to find a way to profit from the production of these goods.

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