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Economics
MEDIUM
ENGLISH
Economics
The Coase theorem states that ?
A
public goods should be produced up to the point where the additional benefit received by society equals the additional cost of producing the good
Option A
under certain conditions, private parties can arrive at the efficient solution without government involvement
Correct answer
C
the private sector will fail to produce the efficient amount of a public good because of the free-rider problem.
Option C
D
if there are external costs in production the government must intervene in the market to assure that the efficient level of output is produced
Option D
Correct answer: B
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