What are two characteristics all public goods have in common? rivairy and exclud

Question

What are two characteristics all public goods have in common? rivairy and excludability excludability rivalry and nonrivalry and nonexcludability nonrivalry and nonexcludability QUESTI 10 points Save Answer Why would private companies NOT want to produce public goods? it is illegal O taxes are too high ( the free rider problem Othey produce externalities QUESTI 10 points Save Answer Why does the market fail with products that have positive O some of the benefits O nobody wants to buy externalities? spillover to a third party these products O nobody wants to sell these products the government takes over their production QUESTI 10 points Save Answer Which of the following is an example of product with a positive externality in O cigarettes O education loud music O shoes

Explanation / Answer

a) Public goods are non-excludable and non-rival in nature i.e. if one person uses it will not be reduced for the consumption of the other and an individual can't be stopped by using the product no matter he has paid for it or not.

The answer is "D".

b) "C". a private company faces a free rider problem when he produces the public goods. That means users who have not paid for the service but using it.  

c) "B", nobody wants to buy these products.

d) "B", Education is a positive externality good.

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