Which of the Following Is True in a Lindahl Equilibrium

question 38

Multiple Choice

Which of the following is true in a Lindahl equilibrium for cooperative supply of a pure public good

• A) The sum of the tax shares per unit paid by each consumer is equal to the marginal social cost of the public good.
• B) The sum of the tax shares per unit paid by each consumer is equal to the marginal social benefit of the good.
• C) The sum of the tax shares per unit paid by each consumer is maximized.
• D) both a and b

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Definitions:

Pony Express

A fast mail service crossing the North American continent from Missouri to California that operated from April 1860 to October 1861.

Taverns

Establishments serving as gathering places in communities for consuming alcoholic beverages and sometimes offering lodging and food, playing significant roles in social life historically.

Sample Space

The set of all experimental outcomes.

Sample Points

Individual pieces of data or observations collected from a sample that are used for analysis.