To achieve the optimal provision of public goods the

Question

Quizplus · Accepted Answer

Public goods have certain characteristics, such as non-excludability and non-rivalrous consumption, which make it difficult for the market to provide them efficiently. Therefore, government intervention is necessary to ensure optimal provision of these goods. The government can either directly provide the goods or subsidize their production to encourage private providers to produce them. Limiting the provision of the goods or taxing producers of these goods may not be effective in achieving optimal provision.

To Achieve the Optimal Provision of Public Goods the