Which of the Following Is True in a Lindahl Equilibrium

question 29

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) are correct.

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Definitions:

Reporting Relationships

The formal lines of authority and accountability within an organization, detailing who reports to whom.

Communication Linkages

The channels and methods by which information is shared and transferred within an organization or between different entities.

Clarifying Jobs

The process of making job roles, responsibilities, and expectations clear to employees, often to improve understanding and performance.

Working Relationships

The interactions and connections formed between colleagues, supervisors, and employees in a professional setting.