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

question 68

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

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