Economics · Public Finance
Which of the following statements are correct regarding the analytical contrast between pure public goods and pure private goods? (A) The total provision of pure private goods is the sum of private individual consumption, whereas the total consumption of pure public goods is equal across individuals. (B) Consumers face uniform prices but consume different quantities in an efficiently functioning competitive market for pure private goods. (C) Consumers pay different prices (personalized Lindahl prices) but consume the same quantity under efficient provision of pure public goods. (D) Atomistic competitive markets perfectly ensure efficient provision for both pure private and pure public goods.
- 1(A), (B), (C), and (D)
- 2(B), (C), and (D) only
- 3(A), (B), and (C) only✓
- 4(A), (B), and (D) only
Correct answer
(A), (B), and (C) only
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