Which of the following is TRUE about public goods?
A) Consumption is rival and nonexcludable.
B) Consumption is nonrival and excludable.
C) Efficient provision occurs at the level of output at which total benefit is equal to total cost.
D) Unregulated private markets produce less than the efficient quantity of a public good.

Question

Quizplus · Accepted Answer

Public goods are nonrival and nonexcludable, meaning they can be consumed by many people without reducing availability to others, and people cannot be easily excluded from using them. Unregulated private markets tend to underproduce public goods because individuals may not have an incentive to pay for them, leading to less than the efficient quantity being produced.

Which of the Following Is TRUE About Public Goods