A Market Is Unlikely to Provide an Efficient Quantity of Public

question 89

Multiple Choice

A market is unlikely to provide an efficient quantity of public goods because

• A) only the government has the vast resources necessary to produce public goods.
• B) the nature of public goods makes it difficult for producers to withhold them from nonpaying consumers.
• C) the technology involved in the production of public goods makes it difficult for private firms to produce them even though they could be produced efficiently.
• D) private production of public goods generally results in a large amount of profit, which is difficult for a firm to effectively pay out to shareholders.