The efficient provision of public goods is difficult because:
A)governments can't directly observe users' willingness to pay for the good
B)some users may exaggerate the benefits in a questionnaire
C)information on costs is poor because prices aren't directly observed
D)all of the above

Question

Quizplus · Accepted Answer

All of the above are true. Governments rely on various methods to estimate users' willingness to pay and gather information on costs, but these methods still have limitations and may lead to incorrect estimations. As a result, the provision of public goods can be inefficient due to difficulties in accurately determining the optimal quantity and pricing of the good.

The Efficient Provision of Public Goods Is Difficult Because