katie00010 katie00010
  • 04-05-2016
  • Business
contestada

why won't a private business produce a nonexcludable public good?

Respuesta :

Kiiing
Kiiing Kiiing
  • 04-05-2016
 Public goods are goods which are non-excludable (no one can be denied from using it) and non-rival (use by one wouldn't affect the consumption by another). 

Because of this, people want to use the good but not pay for it as they know, once the good is provided, they can't be excluded from using it. This is called Free riding. 

Private companies will not be able to tackle the problem of free riding as they won't know what rate to charge and how to make everyone pay. 

Govt. can, however do this easily.
Answer Link

Otras preguntas

a pitcher could hold two twelfths of a gallon of water. If Roger filled up nine pitchers, how much water would he have?
What internal stimulus most likely drives a lioness to search for prey
During colonial times, a system of international interdependence developed between the American colonies and Europe. Which of the following correctly illustrate
What internal stimulus most likely drives a lioness to search for prey
What are the powers of 3 between 3 and 1000?
is 2/8 greater than 7/8
remede pour cancer poumon avec metastase osseuse
True or False: Sociologists define the term race as a category of people who share inherited physical characteristics.
compared with small cells, large cells have more trouble doing what?
A recreation center charges nonmembers $3 to use the pool and $5 to use the basketball courts. A person pays $42 to use the recreation facilities 12 times. How