Multiple Choice
Why is it difficult for a private market to provide the economically efficient quantity of a public good?
A) By law, governments cannot use cost-benefit analysis to determine this quantity.
B) Public goods produce positive and negative externalities.
C) Individual preferences are not revealed in the market for the good.
D) It is too expensive to produce the necessary amount of the good.
Correct Answer:
Verified
Correct Answer:
Verified
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