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Why did masters in the southern colonies prefer black slaves over white indentured servants?
Free-rider Problem
A situation in which some individuals benefit from resources or services without paying for them, leading to underprovision of those goods or services.
Marginal Private Benefit
The additional benefit received by the consumer or producer from consuming or producing one more unit of a good or service.
Marginal Social Cost
The additional cost imposed on society as a whole from producing one more unit of a good or service.
Socially Optimal
is a condition or outcome in which the allocation of resources maximizes the overall benefit to society.
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