Multiple Choice
Suppose the socially optimal output is 134 units of a good and the market output is 95 units of the good. A possible reason the market produces "too little" is that
A) marginal private benefits are less than marginal social benefits.
B) marginal private benefits are greater than marginal private costs.
C) marginal private benefits are greater than marginal social benefits.
D) marginal private costs are greater than marginal private benefits.
E) b and c
Correct Answer:
Verified
Correct Answer:
Verified
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