Private provision of public goods
A)fails because the private firm will always go broke.
B)succeeds because public provision is often more costly.
C)succeeds if consumers expect to obtain a benefit from the consumption of the public good.
D)fails because of the free-rider problem.
E)fails because private firms generally charge higher prices than public firms,and therefore lose customers.

Question

Quizplus · Accepted Answer

Private provision of public goods fails primarily due to the free-rider problem, where individuals have no incentive to pay for the good since they can benefit from it without paying, leading to under-provision.

Private Provision of Public Goods