The efficient price to charge consumers for their use of a public good is
A) equal to the price that the free market would achieve.
B) equal to the average per- person cost of providing this good.
C) that price that prevents free riding by some consumers.
D) equal to the cost of providing the good to one additional consumer.
E) equal to the highest individual marginal benefit from consuming a unit of the good.
Correct Answer:
Verified
Q22: The diagram below shows the marginal benefit
Q23: Private markets will always provide too few
Q24: FIGURE 16- 1 Q25: Economists use the term "market failure" to Q26: The diagram below shows demand and supply Q28: Consider a non- rivalrous good,like national defence,provided Q29: Which of the following is the best![]()
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