The socially optimal provision of a public good can be obtained by
a. Privatizing the good
b. Vertically adding the demand curves for the good
c. Horizontally adding the demand curves for the good
d. Eliminating access to the good
e. Allowing open access to the good
Answer: b. Vertically adding the demand curves for the good
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A firm is making a profit under conditions of monopolistic competition if, at the equilibrium output,
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