Perfectly Competitive Markets Will Tend to Under-Allocate Resources to Nonexclusive

Multiple Choice

Perfectly competitive markets will tend to under-allocate resources to nonexclusive public goods because

A) these goods are produced under conditions of increasing returns to scale.
B) no single individual can appropriate the total benefits provided by the purchase of such goods.
C) these goods are best produced under conditions of monopoly.
D) no private producer can provide the capital necessary to produce such goods.