A Lindahl equilibrium Select one: a. equates each individual's marginal benefit to the marginal cost of production. b. assigns tax prices proportional to average benefits. c. sets supply equal to demand. d. tricks people into telling the truth by imposing penalties for lying.

A Lindahl equilibrium Select one: a. equates each individual's marginal benefit to the marginal cost of production. b. assigns tax prices proportional to average benefits. c. sets supply equal to demand. d. tricks people into telling the truth by imposing penalties for lying.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter7: Demand And Supply

Section: Chapter Questions

Problem 6AA

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Concept explainers

Perfect Competition

It is the structure of the market that is said to exist when with many buyers and sellers exchanging similar commodities and its price is fixed by the market forces, demand, and supply, and a single firm cannot cause an impact over the price or market value of the homogenous product. This structure of the market is called perfect competition.

Question

A Lindahl equilibrium Select one:

a. equates each individual's marginal benefit to the marginal cost of production.

b. assigns tax prices proportional to average benefits.

c. sets supply equal to demand.

d. tricks people into telling the truth by imposing penalties for lying.

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