What is an important difference between the demand for a private good and the demand for a public good?
A) Individuals reveal their preferences for a public good, but they do not have to reveal their preferences a private good.
B) The resources used to provide public goods are common resources or government owned; the resources used to produce private goods are all privately owned.
C) Individuals reveal their preferences for a private good, but they do not have to reveal their preferences for a public good.
D) The demand for a private good produces consumption externalities; the demand for a public good produces production externalities.
Correct Answer:
Verified
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A)What you pay
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