The Efficient Price to Charge Consumers for Their Use of a Public

question 49

Multiple Choice

The efficient price to charge consumers for their use of a public good is

• A)equal to the price that the free market would achieve.
• B)equal to the average per- person cost of providing this good.
• C)that price that prevents free riding by some consumers.
• D)equal to the cost of providing the good to one additional consumer.
• E)equal to the highest individual marginal benefit from consuming a unit of the good.

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Definitions:

Unmarried

The state of not being married or not having entered into a marital union.

Metaphorical

Pertaining to or characteristic of a metaphor; using a figure of speech in which a word or phrase is applied to an object or action to which it is not literally applicable.

Cabaret

A form of entertainment featuring music, song, dance, recitation, or drama, often performed in a restaurant or nightclub setting.

Vague

Lacking clarity or preciseness in thought, expression, or meaning.