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For Many Pure Public Goods Like Fireworks Displays, Weather Forecasts

Question 68

Multiple Choice

For many pure public goods like fireworks displays, weather forecasts, and television broadcasts the marginal cost of serving one more consumer is ________, and the optimal quantity of the public good occurs when ________. 


A) zero; provision is infinite.
B) determined by average cost rather than marginal cost; price equals average cost.
C) greater than the average cost; the government provides the good.
D) zero; the marginal benefit of the public good equals zero.

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