Author Question: An increase in congestion costs associated with a public good provided through clubs will _____. ... (Read 96 times)

audie · **on:** Jul 1, 2018

An increase in congestion costs associated with a public good provided through clubs will _____.

a. lead to new clubs being formed
b. lead to a reduction in the optimal size of the club
c. be unrelated to congestion costs
d. lead to fewer clubs being formed

Question 2

Behavioral economics extends traditional economic models by

A) including insights from psychology and human cognition models.
B) modeling behavior rather than prices.
C) admitting that individuals are irrational.
D) admitting that incentives are very important.