A public good is an example of a good that the market may fail to provide efficiently.

Question

Quizplus · Accepted Answer

Public goods are non-excludable and non-rivalrous, meaning that individuals cannot be excluded from using them and one person's use does not diminish the availability of the good for others. As a result, the market may not be able to efficiently provide public goods because individuals have an incentive to free ride and not pay for the good, leading to underproduction or complete absence of the good.

A Public Good Is an Example of a Good That