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

question 14

Multiple Choice

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

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

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Definitions:

German Industrialization

The rapid development and growth of industry in Germany during the 19th and early 20th centuries, transforming its economy.

German Banks

Financial institutions located in Germany, known for their significant role in both the domestic and international banking sectors.

Economic Depression

A long-term downturn in economic activity characterized by high unemployment, low consumer spending, and business failures.

Financial Capitals

Cities that serve as major hubs for financial services, banking, and investment, impacting global finance.