In the competitive market for balloon rides, marginal social cost equals marginal social benefit when 3,000 balloon rides a day are taken and the price of a ride is $130. Which of the following statements is TRUE?
A) There is a free-rider problem.
B) Too many rides are available.
C) Too few rides are available and the price of a balloon ride is too high.
D) The efficient quantity of balloon rides is 3,000 a day.
Correct Answer:
Verified
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