Why will for-profit producers not produce public goods?
A)Markets exist for private goods but not for public goods.
B)The cost of production can be easily determined.
C)Buyers will not be willing to pay for the goods since the benefits are not excludable.
D)All external benefits can be internalised using market prices.

Question

Quizplus · Accepted Answer

Public goods are non-excludable, meaning that once they are provided, individuals cannot be excluded from using them. As a result, there is no way for the producer to charge a price and make a profit from producing the good. Without the ability to earn a profit, for-profit producers have no incentive to produce public goods.

Why Will For-Profit Producers Not Produce Public Goods