Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

why do markets fail to provide public goods? public goods prevent negative externalities so the government must bear the cost public goods are nonexclusive, so

why do markets fail to provide public goods?

  • public goods prevent negative externalities so the government must bear the cost
  • public goods are nonexclusive, so firms cant charge money for them
  • public goods provide positive externalities, so socially optimal production is higher than private production
  • public goods are rival so the government must prevent unfair competition among firms providing them

**multiple choice

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Health Care Management

Authors: Sharon B. Buchbinder, Nancy H. Shanks

3rd Edition

9781284081015

Students also viewed these Economics questions