When Public Goods Are Provided by Private Firms, with No

question 150

Multiple Choice

When public goods are provided by private firms, with no government involvement, we expect that:

• A) the equilibrium quantity will be less than would be efficient.
• B) the equilibrium quantity will be greater than would be efficient.
• C) the equilibrium quantity will be the efficient quantity.
• D) their profits will be excessive.

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Definitions:

Isocarboxazid

A medication used in the treatment of depression by inhibiting the enzyme that breaks down neurotransmitters in the brain.

Anti-inflammatory

Refers to substances or treatments that reduce inflammation or swelling in the body.

Naproxen

A nonsteroidal anti-inflammatory drug (NSAID) used to relieve pain, reduce inflammation, and lower fever.

Ibuprofen

A nonsteroidal anti-inflammatory drug (NSAID) commonly used for relieving pain, fever, and inflammation.