Under which of the following conditions will the private market be able to overcome the problem of free-riding in the context of public goods to some extent? Oa monopoly Ob. identical preferences of consumers Oe Warm glow O d. none of the above At the efficient level of public good provision, each individual would have the same marginal benefit from additional unit of public good as everyone is consuming the same quantity of public good Select ane: O True O False In the presence of positive externality, which of the following is going to be true? O a Competitive market would under-provide the good O b. Social optimal will be the same as competitive market equilibrium Oc Government should introduce a positive tax to correct for the externality O d. Competitive market would over-provide the good

Under which of the following conditions will the private market be able to overcome the problem of free-riding in the context of public goods to some extent? Oa monopoly Ob. identical preferences of consumers Oe Warm glow O d. none of the above At the efficient level of public good provision, each individual would have the same marginal benefit from additional unit of public good as everyone is consuming the same quantity of public good Select ane: O True O False In the presence of positive externality, which of the following is going to be true? O a Competitive market would under-provide the good O b. Social optimal will be the same as competitive market equilibrium Oc Government should introduce a positive tax to correct for the externality O d. Competitive market would over-provide the good

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 2PA

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