Question

The market system does not produce public goods because rev: 04_09_2018 Multiple Choice private firms cannot stop consumers who are unwilling to pay for such goods from benefiting from them. there is no need or demand for such goods. public enterprises can produce such goods at lower cost than can private enterprises. their production seriously distorts the distribution of income

Answer 1

Answer:

Public enterprises can produce such goods at lower cost than can private enterprises.

Since it is public good, the state of the country has the advantage of producing it in a much lower cost as compared to firms operating in the market. Therefore, firms in the market do not produce public goods.