Why Are Firefighting Services Usually Provided by the Government and Not by Private Firms?

782 Words4 Pages
Why are firefighting services usually provided by the government and not by private firms? First of all, the fire services is a kind of public goods, public goods means the goods that no matter whether the individuals are willing to buy, each member of the whole society can benefit from. It is produced by the public sector or it is a product, provided by the government, that the private are unwilling or unable to manufacture, including international security, police, fire services, roads, education and so on. Typically, the Government is defined as public goods producers, public goods are defined as the production and delivery of government products. The market could do nothing about it. "Public goods" are a non-competitive…show more content…
Usually the goods do not have the competitive consumption are called public goods. A person increases the consumption of these products will not reduce other people's consumption level, and a person increase their consumption of these products will not cause any increase in product cost. At the same time, a certain public goods do not have exclusive, that is, some people can not be ruled out "non-payment of it to spend money", then known as the pure public goods. Public goods are non-competitive, and they can be consumed by many people, and a marginal cost for increase in consumer spending is zero. Consumers get some effectiveness from public goods, and its consumption of the marginal cost for a certain degree of effectiveness is zero. From the perspective of efficiency (price equal to marginal cost), t all people should enjoy free public goods. If public goods are produced by the private sector, then they will be bankrupt. Public goods are non-exclusive, and it is easy to have a free-rider problem, that is, it is not avoided that some people can not pay the same consumption of public goods. In such a case, if everyone did not pay or pay very low cost to the consumer of public goods, then there would be no privates who are willing to provide public goods. Even if some consumers are not "free-riders", willing to pay for their own, they are just the

More about Why Are Firefighting Services Usually Provided by the Government and Not by Private Firms?

Get Access