When dealing with pure public goods,

Question

Quizplus · Accepted Answer

Pure public goods are non-rival and non-excludable, which means that once they are provided, everyone can enjoy them and one person's use of them does not diminish their availability to others. As a result, private firms cannot capture the full value of producing such goods and may not have a sufficient incentive to do so. Therefore, in most cases, the government steps in to provide or fund the provision of pure public goods. However, there may be some cases where private firms can provide some pure public goods if they can generate enough revenue through other means such as advertising or complementary products. Hence, while private firms may provide some pure public goods, the government frequently provides them.

When Dealing with Pure Public Goods