The efficient provision of public goods is more difficult than the efficient provision of private goods.

Question

Quizplus · Accepted Answer

Public goods are non-excludable and non-rival, which makes it difficult for private firms to profitably provide them. This often requires government intervention, but even then, the effective provision of public goods can be challenging due to problems such as free riding and lobbying. In contrast, private goods are excludable and rival, which allows market mechanisms to efficiently allocate resources towards their provision.

The Efficient Provision of Public Goods Is More Difficult Than