The reason that private provision of a public good often leads to inefficiency is because
A) private property rights are too costly to enforce.
B) marginal private benefits are too costly to calculate.
C) no one has the incentive to pay for the good.
D) no one has an incentive to conserve the good.
E) the tragedy of the commons occurs and too many public goods are provided.

Question

Quizplus · Accepted Answer

Private provision of a public good often leads to inefficiency because public goods are non-excludable and non-rivalrous, meaning that individuals can benefit from the good without paying for it, leading to under-provision as no one has the incentive to pay.

The Reason That Private Provision of a Public Good Often