Which of the Following Is Not True of Lindahl Prices

question 3

Multiple Choice

Which of the following is not true of Lindahl prices for collective consumption goods?

• A)Lindahl pricing might be useful in achieving political agreement on the proper amount of the public good to be produced.
• B)Lindahl prices are set so the marginal benefit they receive from the public good is equal to the marginal cost.
• C)Lindahl prices are difficult to calculate in practice.
• D)Lindahl prices are necessary for economic efficiency.

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