Why Would It Be Inefficient for the Government to Charge

question 39

Multiple Choice

Why would it be inefficient for the government to charge a price for consuming a public good such as national defence?

• A)Too much defence will be provided.
• B)The price cannot be set to cover all defence costs.
• C)No one will be willing to pay to consume any national defence.
• D)The marginal cost of providing national defence is zero.
• E)Too little national defence will be provided.

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