Sometimes, Public Goods Whose Benefits Are Less Than Their Costs

question 18

Multiple Choice

Sometimes, public goods whose benefits are less than their costs still get produced because

• A)the marginal benefit is still larger than the marginal cost.
• B)of externalities in production.
• C)the benefits accrue to politically powerful government officials and their constituents.
• D)of market failures.

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Definitions:

Course Of Business

The usual activities and practices of a company or individual in their day-to-day operations.

Liabilities

Financial obligations or debts a company owes to others, payable in money, goods, or services.

Owner's Equity

The residual interest in the assets of an enterprise after deducting its liabilities.

Assets

Resources owned or controlled by a company that are expected to provide economic benefits or value in the future.