To achieve the optimal provision of public goods,
a. the market should be allowed to find its equilibrium without government interference
b. the government must limit the provision of these goods
c. the government must levy taxes on producers of these goods
d. the government must either provide the goods at prices different from those established on the market, or subsidize the production of those who provide thegoods
e. a tax must be imposed on consumers equal to the negative externality
D
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An increase in the U.S. cattle herd in Texas because of favorable market conditions will
A. shift the supply curve of US corn to the right. B. shift the supply curve of US corn to the left. C. shift the demand curve for US corn to the right. D. shift the demand curve for US corn to the left.
Distinguish economies and diseconomies of scale. How can the extent to which economies and diseconomies of scale explain the size and number of real world firms in an industry?