Refer to the Provided Supply and Demand Graph for a Public

question 222

Multiple Choice

Refer to the provided supply and demand graph for a public good. If Q₁ units of the public good are produced, then

• A)users are willing to pay more for the public good than it costs to produce it.
• B)users are willing to pay less for the public good than it costs to produce it.
• C)there is an overallocation of resources toward producing this public good.
• D)allocative efficiency is achieved in the market.

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