Question: 1. Explain the relationship between Lindahl equilibrium and efficiency in the production of a collective consumption good. a: Does Lindahl equilibrium necessarily imply that the

1. Explain the relationship between Lindahl equilibrium and efficiency in the production of a collective consumption good.

a: Does Lindahl equilibrium necessarily imply that the good is being produced efficiently?

b: Does efficiency in the production of the good necessarily imply Lindahl equilibrium?

c: How is Lindahl equilibrium beneficial to the political process of agreeing on the quantity of public sector output? Use a graph to illustrate your answer.

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