Private Provision of Public Goods

question 26

Multiple Choice

Private provision of public goods

• A)fails because the private firm will always go broke.
• B)succeeds because public provision is often more costly.
• C)succeeds if consumers expect to obtain a benefit from the consumption of the public good.
• D)fails because of the free-rider problem.
• E)fails because private firms generally charge higher prices than public firms,and therefore lose customers.

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Definitions:

Phylogeny

The evolutionary history and relationships among individuals or groups of organisms, often depicted as a phylogenetic tree.

Relationship

A connection, association, or involvement between two or more entities.

Theory of Natural Selection

A foundational principle of evolutionary biology proposing that organisms better adapted to their environment tend to survive and produce more offspring.

Evolutionary Scenario

A theoretical framework used to describe and analyze the evolutionary processes that give rise to specific traits or behaviors.