Economics private sector.....

User Generated

gq4422

Economics

Description

Why does the private sector not have an incentive to provide public goods?

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Explanation & Answer

The private sector does not have an incentive to provide public goods because the private sector would be providing the goods without anyone paying for them.

You can compare this to daily life. If someone asked you to drive them to the mall for free you'd think twice, however if the person was paying $100 then you'd probably be more inclined to agree to take them to the mall.


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