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:

Higher-Level Managers

are executives or top-tier leaders who have significant authority and responsibility for the overall direction and strategy of an organization or major divisions within it.

Organization Structure

The arranged relationships and relative ranks of parts and positions within an organization, determining how roles, responsibilities, and power are distributed.

Implementing Work Policies

The process of putting into action the rules and guidelines designed to direct and regulate the behavior and decisions of employees at work.

Multiple Linkage Model

A leadership model that proposes leaders influence group performance through specific variables, including task structure and group atmosphere.