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:

Central Tendency

A numerical metric that pinpoints a sole figure to typify a whole data distribution, often utilizing the mean, median, or mode.

Data

Facts and statistics collected together for reference or analysis, often used as a basis for making decisions or drawing conclusions.

Median

The middle value of a dataset arranged in order of magnitude, or the mean of the two middle values if the set has an even number of observations.

Mean

The mean of a collection of numbers, determined by summing up the values and then dividing by the total count of these values.