Without government intervention, public goods would

Question

Quizplus · Accepted Answer

Public goods are non-excludable and non-rivalrous, meaning once provided, they cannot be limited to only those who pay for them and can be consumed by multiple individuals without diminishing their availability. This creates a free-rider problem where individuals have an incentive to not pay for the good and still benefit from its provision. Without government intervention, there would be no incentive for private firms to produce public goods as they would not be able to effectively charge for them and recoup their costs, leading to a lack of provision of public goods.

Without Government Intervention, Public Goods Would