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The Free Market Fails to Provide Public Goods Because

Question 10

Multiple Choice

The free market fails to provide public goods because:


A) private firms cannot prevent people from using the good or service
B) the goods and services are not demanded by consumers
C) the private costs of production are greater than the social costs of production
D) the costs of production are zero, therefore private firms cannot determine what output level to produce to maximise profits

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