Chillvibes Chillvibes
  • 09-01-2017
  • Business
contestada

In 1-2 sentences, explain why the private businesses will not provide public goods. 

Respuesta :

Аноним Аноним
  • 20-01-2017
ublic 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

Which concession was NOT given to the Germans by the Russians? Territory Peace with the Germans End to fighting Support with Russian troops
If PA = 10, and BE = 21, find BP
Explain why 3x^2+kx-1 is never always positive for any value of k
The sun weathers rocks by _____. a.dissolving its mineralsB)heating its minerals unevenlyC)chemically reactiong with its mineralsD)melting and freezing its mine
Why is density an important feature of a population?
In the diagram, what is mVSR? mVSR = °
Which factor does not affect a habitat's carrying capacity?
Homeostasis refers to A. the tendency of a cell to maintain a stable internal environment. B. the effect of natural selection on human evolution. C. th
The blood flows from the atrium to ?through the ?
The MOST important aspect of the Monroe Doctrine (1823) was that it