Suppose That the Marginal Social Benefit from Another Unit of a Public

Multiple Choice

Suppose that the marginal social benefit from another unit of a public good is less than the marginal social cost of producing it. Then

A) the number of free riders is at its efficient amount.
B) less of the product should be produced because its provision exceeds the efficient level.
C) more of the product should be produced because its provision is less than the efficient level.
D) the principle of minimum differentiation means that production should be decreased.