The market system does not produce public goods because:.private firms cannot stop consumers who are unwilling to pay for such goods from benefiting from them.public enterprises can produce such goods at lower cost than can private enterprises.their production seriously distorts the distribution of income.there is no need or demand for such goods

Public good refers to the good which satisfies the two conditions: Non-Exclusion - those who do not…

Answered: he market system does not produce…

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter5: Difficult Cases For The Market And The Role Of Government

Section: Chapter Questions

Problem 11CQ

See similar textbooks

Related questions

Question

The market system does not produce public goods because:.
1. private firms cannot stop consumers who are unwilling to pay for such goods from benefiting from them.
2. public enterprises can produce such goods at lower cost than can private enterprises.
3. their production seriously distorts the distribution of income.
4. there is no need or demand for such goods

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions