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The Efficient Quantity of a Public Good Can't Be Produced

Question 72

Multiple Choice

The efficient quantity of a public good can't be produced by private firms because


A) only the government has the necessary resources.
B) it is impossible to determine the efficient amount.
C) consumers have an incentive to free ride and not pay for their share of the good.
D) private firms aren't large enough.
E) the price would be too high if private firms produced the goods.

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