A Major Reason Why Public Goods Are Not Supplied by the Market

question 5

Multiple Choice

A major reason why public goods are not supplied by the market is the:

• A) free-rider problem.
• B) existence of negative externalities.
• C) fact that no one is willing to pay for them.
• D) fact that public goods are rival.
• E) fact that no firm would be able to earn a profit by producing them.

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Definitions:

Value-Added Efforts

Initiatives or activities that enhance the worth of products, services, or processes, providing additional benefits to customers or stakeholders.

Scrap Rates

The percentage of materials or products that are discarded because they are not up to the required standards or specifications.

Continuous Improvement

A sustained endeavor to refine products, services, or processes through gradual and revolutionary enhancements.

Performance Management

Is a continuous process of identifying, measuring, and developing the performance of individuals and teams, through genuine feedback, mentoring and training, and ensuring alignment of every single job in the organisation with the strategic goals of the organisation.