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If the Marginal Social Benefit of a Public Good Is

Question 2

Multiple Choice

If the marginal social benefit of a public good is greater than the marginal social cost of providing the good, then:


A) the private market will best determine who and how much of the good will be provided.
B) a community will provide the good.
C) the community will not provide the good.
D) free riding will not occur, so the private market will provide the socially optimal amount.

Correct Answer:

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