The private sector will not provide public goods because:

Question

Quizplus · Accepted Answer

Public goods are characterized by non-excludability and non-rivalry in consumption, which makes it difficult for private firms to charge customers for their use and earn a profit. As a result, consumers are likely to be free riders, enjoying the benefits of the good without paying their fair share, which undermines the incentive for firms to produce them. Therefore, the private sector is unlikely to provide public goods on its own.

The Private Sector Will Not Provide Public Goods Because