Which of the following is true in a Lindahl equilibrium for cooperative supply of a pure public good?

Question

Quizplus · Accepted Answer

In a Lindahl equilibrium, the sum of the tax shares per unit paid by each consumer is set equal to their marginal willingness to pay for the public good. This means that the total amount collected from all consumers equals the marginal social benefit of the public good. At the same time, the sum of the tax shares per unit paid by each consumer must also be equal to the marginal social cost of providing the public good. Therefore, both options (a) and (b) are correct.

Which of the Following Is True in a Lindahl Equilibrium