Which factor is likely to prevent private market forces from providing the optimal amount of a public good?

Question

Quizplus · Accepted Answer

Private market forces may not provide the optimal amount of a public good because of the free rider problem, where individuals can benefit from the public good without contributing to its provision. As a result, private providers may not have an incentive to produce the optimal amount of the public good. Non-satiated preferences and large differences in demand for the public good may affect the distribution of the public good among individuals, but it is unlikely to prevent private markets from providing the optimal amount. Little to no difference in demand for the public good may even make it easier for private markets to provide the optimal amount.

Which Factor Is Likely to Prevent Private Market Forces from Providing