A private firm would have difficulty producing and selling

Question

Quizplus · Accepted Answer

National defense is a public good that is provided by governments to ensure the safety and security of the citizens of a country. It is difficult for a private firm to produce and sell national defense as it requires a large amount of resources and specialized knowledge which are not easily available in the private sector. Additionally, national defense is non-excludable and non-rivalrous, meaning that one person's consumption of national defense does not reduce the amount available to others and it is difficult to exclude anyone from its benefits.

A Private Firm Would Have Difficulty Producing and Selling