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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Definitions:

Reward

A form of compensation or incentive given in exchange for the fulfillment of a certain task or achievement.

Advertisements

Public notices promoting products, services, or events through various mediums like TV, radio, online platforms, or print media.

Specified Prices

Prices that are explicitly set out, defined, or agreed upon in a contract or agreement.

Contractual Liability

The liability that individuals or entities have to one another as a result of entering into an agreement.