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The Government Should Produce a Good Only If

Question 64

Multiple Choice

The government should produce a good only if:


A) the expected marginal benefits from the good are less than the expected marginal costs.
B) the social cost of production exceeds the private cost of production of the good.
C) the expected marginal benefits from the good exceed the expected marginal costs.
D) the social cost of production is equal to the private cost of production of the good.
E) the marginal social benefit is lower than the marginal private benefit from the good.

Correct Answer:

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