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Why Does the Private Sector Typically Fail to Provide Public

Question 36

Multiple Choice

Why does the private sector typically fail to provide public goods?


A) Because public goods are consumed in the long run but must be paid for in the short run
B) Because production of public goods requires a capital investment beyond what a private firm can finance
C) Because private firms do not have a means of collecting payment from those who benefit from consumption of the good
D) Because the industries that produce public goods are not motivated by profit

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