Government provision of public goods is probably more efficient than private provision because:

Question

Quizplus · Accepted Answer

All three options listed in the answer choice (A, B, and C) provide reasons why government provision of public goods is likely to be more efficient than private provision. The nonexcludable nature of public goods makes it difficult for private firms to charge each individual for use of the good, which would require costly monitoring. Private firms would also be inclined to charge a price for providing the good to additional users, while efficiency would dictate that additional users be allowed to consume the good free of charge. Additionally, the free rider problem may result in less than the efficient amount of the good being provided by private firms, as individuals may be unwilling to pay for the good if they believe they can receive it for free.

Government Provision of Public Goods Is Probably More Efficient Than