Why do markets fail to provide public goods? OA. Public goods are rival, so the government must prevent unfair competition among firms providing them. OB. Public goods provide positive externalities, so socially optimal production is higher than private production. C. Public goods prevent negative externalities, so the government must bear the cost. D. Public goods are nonexclusive, so firms can't charge money for
Why do markets fail to provide public goods? OA. Public goods are rival, so the government must prevent unfair competition among firms providing them. OB. Public goods provide positive externalities, so socially optimal production is higher than private production. C. Public goods prevent negative externalities, so the government must bear the cost. D. Public goods are nonexclusive, so firms can't charge money for
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
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![Why do markets fail to provide public goods?
OA. Public goods are rival, so the government must prevent unfair
competition among firms providing them.
OB. Public goods provide positive externalities, so socially optimal
production is higher than private production.
must bear the cost.
pro
OC. Public goods prevent negative externalities, so the government
D. Public goods are nonexclusive, so firms can't charge money for
them.
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Transcribed Image Text:Why do markets fail to provide public goods?
OA. Public goods are rival, so the government must prevent unfair
competition among firms providing them.
OB. Public goods provide positive externalities, so socially optimal
production is higher than private production.
must bear the cost.
pro
OC. Public goods prevent negative externalities, so the government
D. Public goods are nonexclusive, so firms can't charge money for
them.
← PREVIOUS
mission
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