--%>

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 : Elucidate how to maintain competition

    Elucidate how to maintain competition?

  • Q : Distinguish between allocative

    Distinguish between allocative efficiency and productive efficiency. Give an illustration of achieving productive, but not allocative, efficiency?

  • Q : When Economic efficiency is present

    Economic efficiency is present while the: (w) economic system is a pure socialist system. (x) resources obtainable are slightly wasted. (y) value of output is maximized, specified restricted resources. (z) utilization of resources is minimized. <

  • Q : Exploit consumers in highly competitive

    This is difficult for firms within highly competitive markets to exploit consumers since: (i) consumer advocates organize boycotts that generate bad publicity. (ii) market pressures force fair distributions of products. (iii) the government sets price

  • Q : Describe Quasi-public goods Describe

    Describe Quasi-public goods?

  • Q : Production Possibility Curve Production

    Production Possibility Curve: Similar to the individuals, a society as entire has restricted resources. It has to decide what to manufacture with restricted resource

  • Q : Define the for whom query in market

    The market system responses the “for whom?” query with: (i) distributing goods on the basis of require. (ii) using central planning to coordinate production decisions. (iii) catering to consumers with adequate resources to demand goods. (i

  • Q : Importance of Economics Importance of

    Importance of Economics:Economics has become one of the major branches of social sciences. This is of enormous practical value in our day by day life. In pure sciences, we study the subject

  • Q : Tax revenues to reduce rate of inflation

    Explain how government might manipulate its expenditures and tax revenues to reduce rate of inflation?

  • Q : How do households dispose of their

    How do households dispose of their income?