Markets May Have Difficulty Providing the Proper Quantity of a Public

question 14

Multiple Choice

Markets may have difficulty providing the proper quantity of a public good because

• A) individuals will tend to become free riders, and private firms will have difficulty generating enough revenue to produce an efficient quantity of the good.
• B) the good generally has a very large value to consumers relative to its cost of production.
• C) the good is one that tends to benefit a large number of people.
• D) the large profit involved in the production of a public good is generally too much for private firms to effectively pay out to shareholders.

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Definitions:

Government Tax

Financial charges imposed by the government on products, income, or activities, used as a means of raising revenue and affecting business operations.

Marketing Objectives

Specific, measurable goals set by a company to guide its marketing efforts and evaluate its success.

Organizational Conflict

The disagreement or discord that occurs when the goals, interests, or values of different individuals or teams are incompatible and they block each other’s efforts to achieve their objectives.

Competitive Analysis

The practice of identifying key competitors and evaluating their strategies, strengths, and weaknesses to improve competitive positioning.