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If at the Quantity Determined by Private Costs and Benefits

Question 188

Multiple Choice

If at the quantity determined by private costs and benefits, the marginal social benefit of a public good is greater than the marginal social cost of providing the good:


A) the private market will best determine how much of the good will be provided and to whom.
B) a community will best 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.

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