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Consider a Remote Village with a Limited,freely Available Water Supply

Question 87

Multiple Choice

Consider a remote village with a limited,freely available water supply and no government intervention in the allocation of water.In this case,each individual has an incentive to use water until their


A) social marginal cost is minimized.
B) private marginal benefit is zero.
C) social marginal benefit is maximized.
D) private and social marginal costs are equal.
E) private marginal cost is zero.

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