--%>
Assignment Help - homework help

Why producers not be able to find enough paying buyers

Why producers not be able to find enough paying buyers for “public goods”?

E

Expert

Verified

Producers would not be able to find enough paying buyers for “public goods” because of the free rider problem mentioned above.  Therefore, “public goods” are not produced voluntarily through the market but must be provided by the public sector and financed by compulsory taxes.

   Related Questions in Business Economics

  • Q : Describe the term cost of capital

    Briefly describe the term cost of capital and also illustrate out its significance?

    		•
  • Q : Larger amount is actually purchased at

    Critically evaluate:  “In comparing the two equilibrium positions, it note that a larger amount is actually purchased at a higher price. This disprove the law of demand.”

    		•
  • Q : Problem on current production

    I have a problem in economics on current production possibilities frontier. Please help me in the following question. The combination of 70 units of clothing and 30 units of food are: (1) Completely employs the economy's capacity. (2) Would leave most

    		•
  • Q : What are the facts of inflation What

    What are the facts of inflation?

    		•
  • Q : What are the scientific method that

    What are the scientific method that Economists use to establish theories, laws, and principles?

    		•
  • Q : Competition is the essential despot of

    Evaluate and explain the statements: “Competition is the essential despot of the market economy”.

    		•
  • Q : Describe the Personal distribution of

    Describe the Personal distribution of income?

    		•
  • Q : Factor Price Equalization theorem

    Please answer each of the exercises below. While you may work together on the homework, you must turn in your own work (in your own words). Homework must be handed in at the beginning of class on the due date unless other arrangements have been made. No late homework will be accepted. Homework wi

    		•
  • Q : Importance of rationally optimal

    Economic scarcity is pervasive, that makes choices essential. Therefore, rationally optimal decisions hinge upon tradeoffs which essentially reflect: (i) cooperation to minimize human greed. (ii) opportunity costs. (iii) competitive social behavior. (

    		•
  • Q : Illustrate Market Equilibrium of Supply

    Illustrate Market Equilibrium of Supply and Demand?

    		•