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:

Symbolic Thought

The ability to use symbols, signs, or objects to represent something else, which is a key aspect of human language and complex thinking.

Human Experience

The sum of individual and collective perceptions, feelings, thoughts, and interactions throughout one's life.

Social Exclusion

The process or act of rejecting or denying certain individuals or groups access to social interaction or inclusion within a society or group.

Physical Pain

An unpleasant sensory and emotional experience associated with actual or potential tissue damage.