Answer to Question 1
Goods like clean air and street lighting are public goods. This means that individuals can consume these goods even without paying for them as they are non-rival and non-excludable. Such goods present particular problems for markets to provide because consumers have an incentive to act as free-riders; they can consume public goods even if they do not pay for them. Therefore, the problem with efficiently providing public goods is that consumers aren't willing to pay for them because no one can be excluded from consuming them once they are provided.
Answer to Question 2
Rule of reason is the criterion introduced by the Supreme Court in 1911 to determine whether a particular action was illegal (unreasonable) or legal (reasonable) under the terms of the Sherman Act.
Propaganda to influence public opinion surrounds us, but most propaganda is covert, difficult to ...
The exhaust gas recirculation system is more efficient at controlling NOx emissions if the exhaust ...
Notice how clean the engine appears. This is a testament of proper maintenance and regular ...
Dry hands and forearms thoroughly with clean paper towels to prevent chapping.
Markets and Institutions Market Story Problem
Blueberry bees (Osmia ribifloris) are efficient pollinators of a variety of plants, including this b