Generally, public goods are provided more efficiently by private firms than by the government.

Question

Quizplus · Accepted Answer

Public goods have characteristics of non-rivalry and non-excludability, which means they are difficult to provide efficiently through the market mechanism. Private firms may not have the incentive to provide public goods without the ability to charge customers directly. The government often provides public goods because of their importance to society, but they may not always be provided efficiently due to bureaucratic inefficiencies and lack of competition.

Generally, Public Goods Are Provided More Efficiently by Private Firms