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When Government Provides a Good with an External Benefit,to Attain

Question 65

Multiple Choice

When government provides a good with an external benefit,to attain efficiency the price paid by consumers is set equal to the


A) marginal private benefit at the efficient level of output.
B) marginal private cost at the efficient level of output.
C) amount paid by taxpayers.
D) market-determined price.
E) marginal external benefit at the efficient level of output.

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