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About L 5 Public Goods
This document summarizes key points from a lecture on public goods: 1. Public goods are nonrival in consumption, meaning one person's use does not reduce availability to others. Examples include national security, street lights, and beaches. 2. For efficient provision, the sum of all consumers' marginal valuations for an additional unit of a public good should equal its marginal cost. 3. However, the "free rider" problem means individuals have an incentive to understate their preferences and let others pay for public goods, which can lead to underprovision. 4. While government provision may help overcome free riding, it still faces challenges in determining the efficient level of public good supply to meet consumer
Detailed Information
| Author: | ['Jeonghwa Yoo'] |
|---|---|
| Publication Year: | 2012 |
| Pages: | 11 |
| Language: | English |
| Format: | |
| Price: | FREE |
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