Private Producers Have No Incentive to Provide Public Goods Because

question 175

Multiple Choice

Private producers have no incentive to provide public goods because

• A)the government subsidy granted is usually insufficient to enable private producers to make a profit.
• B)production of huge quantities of public goods entails huge fixed costs.
• C)they cannot avoid the tragedy of the commons.
• D)once produced, it will not be possible to exclude those who do not pay for the good.

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Definitions:

Serious Side Effects

Unintended, often harmful outcomes associated with the use of medication or medical treatments that can significantly impact health or quality of life.

Sedative-Hypnotic Drugs

Drugs used in low doses to calm people and in higher doses to help people sleep.

Antipsychotics

Medications primarily used to manage psychosis, including delusions, hallucinations, paranoid or bizarre thoughts, and disordered thinking.

Antidepressants

Medications designed to alleviate symptoms of depression by regulating brain chemicals.