khadijahchoudhery khadijahchoudhery
  • 19-12-2020
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Why does the market not supply public goods? What are the two characteristics of public goods?

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kregslayburner
kregslayburner kregslayburner
  • 19-12-2020

Answer:

A public good has two key characteristics: it is nonexcludable and nonrivalrous. ... Nonrivalrous means that when one person uses the good, it does not prevent others from using it. Markets often have a difficult time producing public goods because free riders will attempt to use the public good without paying for it.

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