Why are goods that are non-rivalrous and excludable (such as an uncrowded library or art gallery) often provided by the government?
A) Because when these goods are used beyond capacity,they would not be provided by private firms.
B) The marginal cost to society of providing access to one more user is zero,so it is allocatively efficient to provide this good at a price of zero.
C) Because the government can provide these goods with fewer resources,so it is productively efficient.
D) The marginal private benefit to the last user is greater than the marginal private cost.
E) The marginal benefit to society of providing access to one more user is zero,so it is allocatively efficient to provide this good at a price of zero.
Correct Answer:
Verified
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