Suppose That the Marginal Social Benefit from Another Unit of a Public

question 14

Multiple Choice

Suppose that the marginal social benefit from another unit of a public good is less than the marginal social cost of producing it. Then

• A) the principle of minimum differentiation means that production should be decreased.
• B) the number of free riders is at its efficient amount.
• C) less of the product should be produced because its provision exceeds the efficient level.
• D) more of the product should be produced because its provision is less than the efficient level.

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Definitions:

Muscle Fibers

The individual contractile cells within a muscle that produce force and movement.

Disarticulation

The separation of two bones at their joint, either surgically or as a result of injury.

Sensorineural Hearing Loss

A type of hearing loss resulting from damage to the inner ear or the auditory nerve pathways.

Malleus

The malleus is a small bone in the middle ear that transmits sound vibrations from the eardrum to the inner ear.