Perfectly competitive markets will tend to under-allocate resources to nonexclusive public goods because:
a. these goods are produced under conditions of increasing returns to scale.
b. no single individual can appropriate the total benefits provided by the purchase of such goods.
c. these goods are best produced under conditions of monopoly.
d. no private producer can provide the capital necessary to produce such goods.
b
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The Navigation Acts:
a. placed tariffs on the import of British goods by the colonies. b. prohibited trade between the British West Indies and the colonies. c. allowed colonial trade on British ships commanded by foreign captains. d. encouraged trade between the colonies and the Dutch. e. None of the above is correct.
An increase in the interest rate today leading to a decrease in consumption today violates the law of demand
a. True b. False Indicate whether the statement is true or false