No Individual Is Willing to Pay to Provide the Efficient

question 9

Multiple Choice

No individual is willing to pay to provide the efficient level of a public good since the:

• A)marginal cost of production is zero.
• B)good will be nonrival and thus underconsumed.
• C)individual's marginal benefit is less than the marginal social benefit.
• D)marginal benefit of allowing one more individual to consume the good is zero.

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Definitions:

Research Process

A systematic series of steps that researchers follow to gather, analyze, and interpret information to gain knowledge or reach a conclusion.

Develop Research Hypothesis

The process of formulating a specific, testable statement based on a theory to be examined in a study.

Independent Variable

The factor in a study or experiment that is intentionally altered to see its impact on the variable that is being measured.