Producers Have Little Incentive to Produce a Public Good Because

question 108

Multiple Choice

Producers have little incentive to produce a public good because

• A)the social benefit is less than the private benefit.
• B)the social benefit is less than the social cost.
• C)there is a free-rider problem.
• D)there is a Tragedy of the Commons.

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Definitions:

Diversification

A strategy for managing risk that diversifies by incorporating a broad range of investments in a single portfolio.

Market Development

A growth strategy where a company seeks to increase sales by promoting existing products in new markets or new segments of current markets.

Product Development

The process of bringing a new product or service to the market, from initial concept through design, prototype, testing, and finally, launch.

Market Penetration

A strategy aiming to increase market share within an existing market segment by using methods such as pricing adjustments, increased promotion, and product improvements.