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Author Question: Why are goods that are non-rivalrous and excludable (such as an uncrowded library or art gallery) ... (Read 56 times)

olivia_rose

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on: Oct 12, 2022
Why are goods that are non-rivalrous and excludable (such as an uncrowded library or art gallery) often provided by the government?
◦ The marginal private benefit to the last user is greater than the marginal private cost.
◦ The marginal cost to society of providing access to one more user is zero, so it is allocatively efficient to provide this good at a price of zero.
◦ Because when these goods are used beyond capacity, they would not be provided by private firms.
◦ The marginal benefit to society of providing access to one more user is zero, so it is allocatively efficient to provide this good at a price of zero.
◦ Because the government can provide these goods with fewer resources, it is productively efficient.
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Marked as best answer by olivia_rose on Oct 12, 2022

BryanAultm

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Reply #1 on: Oct 12, 2022
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olivia_rose

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Reply 2 on: Oct 12, 2022
Wow, this really help

Laurenleakan

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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