Asked by

Nesha Grubbs
on Nov 25, 2024

verifed

Verified

The market system does not produce public goods because

A) there is no need or demand for such goods.
B) private firms cannot stop consumers who are unwilling to pay for such goods from benefiting from them.
C) public enterprises can produce such goods at lower cost than can private enterprises.
D) their production seriously distorts the distribution of income.

Public Goods

Goods or services that are non-excludable and non-rivalrous, meaning they can be used by everyone without diminishing their availability to others, such as public parks or national defense.

Private Firms

Businesses that are privately owned, not traded publicly on stock exchanges, and typically managed by the owner or shareholders.

  • Recognize the challenges and reasons why the market system does not readily produce public goods.
verifed

Verified Answer

KL
Kaitlyn LaGrangeNov 25, 2024
Final Answer:
Get Full Answer