Private Markets Will NOT Provide the Efficient Quantity of a Public

question 162

Multiple Choice

Private markets will NOT provide the efficient quantity of a public good because

• A) of the principle of minimum differentiation.
• B) public goods are rival and excludable.
• C) of rational ignorance.
• D) of the free-rider problem.

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Definitions:

Duplicate Work

Replicating tasks or efforts unnecessarily, often leading to inefficiency and waste of resources.

Similar Tasks

Tasks that share common features or objectives, requiring similar skills or processes to complete.

Bureaucracy Structure

A hierarchical organizational structure characterized by fixed areas of responsibility, a defined hierarchy of authority, and a set of rules and procedures to control operations and decision-making.

Formalized Structure

An organizational setup that emphasizes well-established rules and procedures, clear hierarchy, and fixed duties and responsibilities.