If Linda’ annual income is $160,000 and she pays $35,000 in taxes, and Paul’s annual income is $100,000 and he pays $25,000 in taxes, the tax system is

Inefficient outcomes can arise in markets for public goods because:

A) too much of an exclusive good is produced. B) too little of an exclusive good is produced. C) too much of a nonexclusive good is produced. D) too little of a nonexclusive good is produced.

Explain the reason behind the declining gap between average cost (AC) and average variable cost (AVC) curves at higher levels of output