8) The quantity of a public good produced by private provision A) is equal to the...

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8) The quantity of a public good produced by private provision A) is equal to the efficient quantity. B) is less than the efficient quantity. C) is greater than the efficient quantity D) maximizes total public benefit. E) maximizes net public benefit.

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Answer 1

Answer #1

8) Option E

As private firms operate at a point where marginal benefit equals marginal cost and hence the net benefits would be maximized.

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Answer 2

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