Economics · Public Economics

Consider the following statements about public goods and externalities: A. A pure public good is both non-excludable and non-rival in consumption. B. The free-rider problem arises because individuals can benefit from a public good without contributing to its cost when non-excludability holds. C. The efficiency condition for public goods requires that the SUM of marginal benefits across all consumers equals the marginal cost (Samuelson rule: ΣMBi = MC). D. A negative production externality means the marginal social cost (MSC) exceeds the marginal private cost (MPC). E. The Coase Theorem states that efficient outcomes can be achieved through private bargaining regardless of who holds the property rights, as long as transaction costs are zero. Which statements are CORRECT?