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The Quantity Produced of a Common-Resource Good Is Likely to Deviate

Question 129

Multiple Choice

The quantity produced of a common-resource good is likely to deviate from the socially optimal quantity because


A) common-resource goods are nonrival.
B) common-resource goods cannot be traded.
C) there is an incentive to overproduce the good.
D) of the free-rider problem.
E) positive externalities are likely to exist.

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