Author Question: Why are public goods provided by the government, rather than by the private sector? A) because ... (Read 207 times)

Kikoku · **on:** Jun 29, 2018

Why are public goods provided by the government, rather than by the private sector?

A) because they are large-scale projects that require the kind of financing only governments can generate through the issuance of bonds
B) because it would be difficult for a private sector firm to make a profit providing a public good, since consumers who benefit would not have to pay for it
C) because no one really benefits from public goods
D) because private sector firms do not have the foresight to plan for public goods

Question 2

Monopolistic competition means

A) monopolies from several countries compete in the global market.
B) a large number of firms producing homogeneous products.
C) a large number of firms producing differentiated products.
D) few firms producing differentiated products.