Using Figure 4.2,suppose point C represents the optimal mix of public and private goods for a society.The market mechanism is likely to result in a mix of output represented by point

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The graph shows that the optimal mix of public and private goods is at point C. However, the market mechanism tends to underproduce public goods, as shown by the gap between the marginal social benefit and marginal private cost curves. Therefore, the market is likely to result in a mix of output represented by point D, which is a lower level of public goods and a higher level of private goods than the optimal mix at point C.