Author Question: Which of the following is not a potential drawback to public provision of public goods? a. Public ... (Read 492 times)

pragya sharda · **on:** Jul 1, 2018

Which of the following is not a potential drawback to public provision of public goods?

a. Public provision lacks clear signals about the value of the good being produced, possibly leading to under and over provision of the goods.
b. Many collective consumption goods might be overproduced private goods.
c. Public provision often implies taxation, which creates an excess burden that might overwhelm any efficiency gains.
d. Many collective consumption goods are really impure private goods and thus the efficient level of output is never reached.

Question 2

Which of the following models results in the highest level of output assuming a fixed number of firms with identical costs and a given demand curve?

A) Cournot
B) Stackelberg
C) Monopoly
D) Cartel