A competitive market economy is unlikely to provide an efficient quantity of some public goods because:
A) only the government has the vast resources necessary to produce public goods.
B) the nature of public goods makes it difficult for producers to withhold them from nonpaying consumers.
C) the technology involved in the production of public goods makes it difficult for private firms to produce them even though, once produced, they could be marketed efficiently.
D) private production of public goods generally results in a large amount of profit, which is difficult for a firm to effectively pay out to shareholders.
Correct Answer:
Verified
Q124: To avoid the free-rider problem, which of
Q125: Which of the following is an example
Q126: Public goods differ from private goods in
Q127: Goods whose benefits to society are not
Q128: Public goods are usually provided by:
A) private
Q130: Which of the following would be an
Q131: The city of Logan Square needs $40
Q132: From the standpoint of economic efficiency, competitive
Q133: A public good will:
A) be efficiently provided
Q134: If the free market is called upon
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents