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Private markets can provide public goods when it becomes commercially beneficial for them to do so.
Look at defence for an example. This area of government responsibility is increasingly being undertaken by the private sector.
The requirements of something being classified as being a public good does not include it being a loss-making enterprise.
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∙ 12y ago
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Why is it difficult for private industry to provide public goods?
Private industries mainly work for profit purpose. If they provide public goods then it has to be priced at lower rates which will diminish their profit margins. Thus, it is difficult for private players to provide public goods.
Why are private companies unlikely to provide public goods'?
The non-excludability of public goods makes it difficult to profit from them.
The government needs to provide to provide public goods for what reason?
private companies can not benefit by providing them
What are public goods and private goods?
Public goods are goods meant for everyone to share. Private goods are goods meant for one person or one small group of people.
Difference between public goods and private goods?
Public goods are non-excludable and non-rival in consumption whereas Private goods are excludable and rival in consumption.
Why is it difficult for private industry to provide public goods?
Private industries mainly work for profit purpose. If they provide public goods then it has to be priced at lower rates which will diminish their profit margins. Thus, it is difficult for private players to provide public goods.
Why are private companies unlikely to provide public goods'?
The non-excludability of public goods makes it difficult to profit from them.
The government needs to provide to provide public goods for what reason?
private companies can not benefit by providing them
What are public goods and private goods?
Public goods are goods meant for everyone to share. Private goods are goods meant for one person or one small group of people.
Difference between public goods and private goods?
Public goods are non-excludable and non-rival in consumption whereas Private goods are excludable and rival in consumption.
Can the market provide a public good on its own?
can the market provide a public goods on its own? government policies about public goods?
What would happen if public goods were marketed like private goods?
public goods would be overproduced
What are the objectives of public sector?
1.Ensure the essential goods and services are available for everyone equally; 2.Provide the goods and services that are too important for the security of the country; 3.Provide goods and services that cannot be provided by the private sector.
Why do you discuss private goods and public goods in economics?
because we have no lives
Does the homebuilding industry produce public goods or private goods?
service industry
Why is the private sector unlikely to supply public goods in socially optimal quantities?
The non-excludability of public goods makes it difficult to profit from them.
Reasons for the existence of public sector organisation?
To provide benefit to everyone within socially acceptable norms eg . equality of Access to education and healthcare
