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.
Gallery of Xylosandrus crassiusculus split open, with pupae and black fungus
British Library
British Library
Ecosystem goods and services and monetary values
Library