Why do market failures arise in case of public goods?
A) The quantity produced is much more than is actually required by the people.
B) The quality of these goods are not good enough.
C) The quantity produced is too less from the society's point of view.
D) The government wastes a lot of resources for producing a public good.
E) The users of such goods are required to pay a high price for these goods.
Correct Answer:
Verified
Q7: The table below shows the payoff (profit)
Q8: Which of the following statements is true?
A)In
Q10: The table below shows the payoff (profit)
Q11: In the case of public goods:
A)the free
Q13: The table below shows the payoff (profit)
Q14: When social costs of producing or consuming
Q15: The table below shows the payoff (profit)
Q16: The table below shows the payoff (profit)
Q16: Why do externalities arise?
A)The costs of production
Q18: Social cost is _.
A)the sum of fixed
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