Which of the Following Is a Problem Associated with Raising

Multiple Choice

Which of the following is a problem associated with raising fees from a subsidized level to a level that just covers the cost of service provision?

A) Reduction of infrastructure sector's net drain on the government budget
B) The additional revenue can be used to expand the quantity or quality of the service
C) Reduces the use of services by poorer households where the social cost outweighs the social benefit
D) May reduce the use to a point where the marginal social benefit of one more unit is greater than the marginal social cost of one more unit.