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.
Correct Answer:
Verified
Q3: Public goods have at least one of
Q4: The optimal output of a collective consumption
Q5: When a collective consumption good become congested
Q6: Lindahl prices for collective consumption goods are
Q7: For a collective consumption good,market demand is
Q9: If government decides to produce a collective
Q10: The primary advantage of Lindahl pricing is
Q11: The inefficiency for collective consumption goods stems
Q12: Collective consumption goods are _.
A)goods that can
Q13: Since collective consumption goods have a marginal
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