Sometimes, public goods whose beneﬁts are less than their costs still get produced because

Question

Quizplus · Accepted Answer

Public goods may still be produced even if their benefits are less than their costs because the benefits may accrue to politically powerful government officials and their constituents. This can happen due to political motivations or the desire to gain or maintain support from certain groups, even if the overall economic efficiency is not maximized.

Sometimes, Public Goods Whose Beneﬁts Are Less Than Their Costs