According to the Tiebout hypothesis,
A. an efficient mix of public goods is produced when local land/housing prices and taxes reflect consumer preferences.
B. under certain conditions, when externalities are present, private parties can arrive at the efficient solution without government involvement.
C. a good or service is usually so costly that its provision generally does not depend on whether any single person pays.
D. an optimal (or most efficient) level of output exists for every public good.
Answer: A
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