what is lindahl equilibrium?explain with the help of diagram.
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It is a method for identifying the efficient level of provision for public goods. Also remember that for public goods, in equilibrium all agents consume the same quantity but may have different prices.
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Lindahl equilibrium is a state of equilibrium in a quasi-market for a pure public good. Like a competitive market equilibrium, the supply and demand for the good are balanced, in addition to the cost and revenue to produce the good. Lindahl equilibrium depends on the possibility of implementing an effective Lindahl tax, first proposed by the Swedish economist Erik Lindahl.
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