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.
d
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The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week. Between points A and B, the slope of the line equals
A) -5. B) -4. C) -3. D) -1. E) -2
There is some evidence to suggest that X-inefficiency is:
A. absent whenever two or more producers are competing with one another. B. not encountered in either competitive or monopolistic firms. C. more likely to occur in monopolistic firms than in competitive firms. D. more likely to occur in competitive firms than in monopolistic firms.