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Which of the following is least accurate regarding obstacles to the efficient allocation of resources in a competitive market?

A) Public goods, such as national defense, tend to be overproduced because they can be consumed by everyone whether they pay for the goods or not.

B) Subsidies lead to production of more than the efficient quantity of the good.

C) Quotas result in production of less than the efficient quantity of the good.

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Public goods can be consumed by every member of a society, regardless of whether they paid for them or not. In a competitive market for public goods, fewer goods than the efficient quantity would be produced because it is not in each person’s interest to pay their share of the cost.