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Because of the Free Rider Problem

Question 80

Multiple Choice

Because of the free rider problem


A) side payments are necessary in order to achieve an efficient outcome
B) a needed side payment can shrink until it is not large enough to compensate losers and still leave gainers better off
C) efficient outcomes can never be achieved
D) the Coase Theory often applies to real-world situations
E) externalities are less common than they would otherwise be

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