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In a Lindahl Equilibrium

Question 31

Multiple Choice

In a Lindahl equilibrium,


A) each consumer purchases a pure public good up to the point at which his or her marginal bene?fit equals the marginal social cost of the good.
B) each person pays a tax per unit of the pure public good equal to his or her marginal benefit.
C) the sum of the marginal benefits of all consumers equals the marginal social cost of the good.
D) Both (b) and (c) are correct.

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