The quantity of a public good supplied by a private market is
A) smaller than the efficient quantity.
B) equal to the efficient quantity.
C) larger than the efficient quantity.
D) the quantity that maximizes total public benefit.

Question

Quizplus · Accepted Answer

Private markets tend to underprovide public goods because they cannot easily exclude non-payers, leading to a smaller than efficient quantity being supplied.

The Quantity of a Public Good Supplied by a Private