If everyone seeks a free ride, what mix of output will be produced in Figure 9.2? Why
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Why would anyone voluntarily contribute to the purchase of public goods like flood control or snow removal?
FIGURE 9.2
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M (market outcome) X (optimal outcome) Markets underproduce public goods. PUBLIC GOODS (units per time period) PRIVATE GOODS (units per time period)
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If everyone seeks a free ride then no public goods will be produced and the output mix will ...View the full answer
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