the market for public goods such as – are often subject to – . private markets tend to – these goods and services because of the – problem. one solution to this problem is for – to use people’s – dollars to provide for public goods.

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13-10-2021
Business

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the market for public goods such as – are often subject to – . private markets tend to – these goods and services because of the – problem. one solution to this problem is for – to use people’s – dollars to provide for public goods.

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ewomazinoade ewomazinoade · Answer 1 · 2021-10-20T11:08:34+02:00

The market for public goods such as city parks are often subject to market failure . Private markets tend to undersupply these goods and services because of the free rider problem. One solution to this problem is for government to use people’s tax dollars to provide for public goods.

A public good is a good that consumers cannot be excluded from consuming and it is also non-rivalrous. For example, everyone has access to a city park.

A private good is a good that consumers can be excluded from consuming and it is also a rivalled good. For example, a private good is a pair of jeans. You would have to pay for the jeans and once you buy the jeans another person cannot buy the jeans.

Market failure occurs when the market is unable to efficiently distribute goods and services to consumers. The free rider problem is a type of market failure. It is when consumer enjoy the benefits of a public good but do not pay for these products.

To learn more about public goods, please check: https://brainly.com/question/12390476?referrer=searchResults