Lindahl tax is a form of taxation in which
A Lindahl tax assigns each individual a tax price for a public good equal to that individual's marginal benefit. At the efficient quantity, the sum of these individual…
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Lindahl tax is a form of taxation in which
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Correct answer A
A Lindahl tax assigns each individual a tax price for a public good equal to that individual's marginal benefit. At the efficient quantity, the sum of these individual marginal benefits equals the marginal cost of providing the public good.
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West Bengal SET (WB SET)