Lindahl pricing is a theoretical concept that aims to achieve an efficient provision of public goods by charging individuals based on their marginal valuation of the good, thus requiring honest revelation of preferences. This results in different individuals potentially paying different prices for the same amount of a public good, leading to an efficient level of provision.

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Lindahl Prices

Question 18

Multiple Choice

Lindahl prices

A) result in efficient levels of public goods provision.
B) require honest revelation of preferences.
C) result in different prices for the same amount of output.
D) cause all of these.
E) none of these answer options are correct.

Correct Answer: