Why Do Private Markets Usually Fail to Provide Lighthouses

question 74

Multiple Choice

Why do private markets usually fail to provide lighthouses

• A)Lighthouses cost too much to build relative to their benefits.
• B)Government intervention makes it hard for private lighthouse owners to compete in the market.
• C)Ship captains have incentives to use lighthouses without paying.
• D)Lighthouses are valued very little by ship captains these days.

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