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Which of the following statements is true of public goods?

A

Without government intervention, the market will produce more than the allocatively efficient quantity because private firms will not consider the costs of society.

B

Without government intervention, the market will produce less than the allocatively efficient quantity because some people can benefit from the goods without paying for them.

C

Without government intervention, the market will produce less than the allocatively efficient quantity because private firms will not produce public goods.

D

Without government intervention, the market will produce more than the allocatively efficient quantity because of the government has a monopoly on production of public goods.

E

The interaction of buyers and sellers in the market will result in the allocatively efficient quantity being produced.

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