When government provides a good with an external benefit, to ...

[ETearle]

When government provides a good with an external benefit, to attain efficiency the price paid by consumers is set equal to the
 
  A) marginal private benefit at the efficient level of output.
  B) marginal private cost at the efficient level of output.
  C) amount paid by taxpayers.
  D) market-determined price.
  E) marginal external benefit at the efficient level of output.

Question 2

Gary and Christine are two players in game, in which Gary's decisions are based on the choice made by Christine. This is an example of a(n) ________.
 
  A) simultaneous move game
  B) extensive-form game
  C) pure-strategy game
  D) zero-sum game

[xthemafja]

Answer to Question 1

A

Answer to Question 2

B