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Efficient Production of a Public Good Requires

Question 3

Multiple Choice

Efficient production of a public good requires


A) that individuals pay for such goods according to benefits received.
B) that each individual's MRS be equal to the RPT of public goods for private goods.
C) that the sum of individuals' MRSs be equal to the RPT of public goods for private goods.
D) that governments produce at the low point of the average cost curve for the public good.

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