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

The half-life of tritium (h) is 12 years. How long does it take for 16. 0 ng of tritium to decay to the point where 2. 0 ng remains?
Discuss the differences between political rap, gangster rap, and pop rap. Cite specific examples and artists in your discussion.
I honestly need help with these
f(x)=ax+b/2 then f^-1 (x-1) =2x-5/2 find a and b​
Find the area of this kite
Someone please help me with this thank you!
Solve question in image (yr 8 math, 40 pt)
what are some simple things we can do to ensure that we are creating a balanced strength plan? Balanced meaning equal attention everywhere with our muscles
DJ Larissa is making a playlist for a friend; she is trying to decide what 10 songs to play and in what order they should be played . Step 2. If she has her ch
The term __________ describes the movement of sperm and accessory gland secretions into the urethra.