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

Question

Quizplus · Accepted Answer

Public goods are characterized by nonrivalry and nonexcludability, meaning they are often underproduced in unregulated private markets because firms cannot easily charge consumers directly, leading to less than the efficient quantity being produced.

Which of the Following Is True About Public Goods