Author Question: Why might it be economically efficient to offer access to an uncongested art gallery or museum at a ... (Read 63 times)

rubiosusy7 · **on:** Oct 12, 2022

Question 1

The "informal defence" of free markets includes the argument that markets
◦ lead to allocative efficiency.
◦ achieve the maximum feasible rate of economic growth.
◦ lead to productive efficiency.
◦ provide automatic coordination of the actions of decentralized decision makers.
◦ permit a centralization of economic power.

Question 2

Why might it be economically efficient to offer access to an uncongested art gallery or museum at a price of zero?
◦ because they are public goods, which would not be provided by the free market
◦ because they are non-rivalrous and non-excludable and therefore should be provided at a price of zero
◦ because the marginal cost of providing access to one more visitor is zero, while the visitor has a positive marginal benefit
◦ because it is good for society if more people visit art galleries and museums
◦ because the marginal benefit received by the visitor is zero, and marginal benefits and marginal cost should be equal

Asfa · **Reply #1 on:** Oct 12, 2022

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