The government is more likely to provide a public good under which of the following conditions?

Question

Quizplus · Accepted Answer

The government is more likely to provide a public good when no individual or firm is likely to make the good available. This is because public goods have the characteristics of non-rivalry and non-excludability, which means that once the good is provided, it can be consumed by anyone and it is difficult to exclude individuals from consuming it. Therefore, private firms may not have the incentive to provide the good as they cannot charge consumers for it or prevent non-payers from accessing it, leading to market failure. In this case, the government may step in and provide the public good to ensure that it is made available for everyone.

The Government Is More Likely to Provide a Public Good