Imagine a community that can produce rainbows. People enjoy rainbows without diminishing other people's enjoyment, and it is impossible to prevent people from enjoying rainbows once they are produced. If the community decided to let private competitive markets produce rainbows it should expect: A: the number of rainbows produced may be positive but will be less than the allocatively efficient number. B: the number of rainbows produced may be positive and will be more than the allocatively efficient number. C: the number of rainbows produced will be positive and equal to the allocatively efficient number. D: the number of rainbows produced will certainly be zero.
Ans: the number of rainbows produced may be positive but will be less than the allocatively efficient number.