What are the distinguishing characteristics of \"public goods\"? Give two exampl

Question

What are the distinguishing characteristics of "public goods"? Give two examples of a public good. Why are public goods difficult for markets to allocate efficiently? Explain in your own words what is meant by external costs and external benefits. Why may market outcomes be less than ideal when externalities are present? *If sellers of roasters were able to organize themselves, reduce their output, and raise their prices, how would economic efficiency be affected? Explain. What is market failure? If market failure is present, does this imply that government intervention will lead to a more efficient allocation of resources? Why or why not? Apply the economic efficiency criterion to the role of government. When would a government intervention be considered economically efficient? When would a government intervention be considered economically inefficient?

Explanation / Answer

3)The second source of market failure is in markets for public (or social) goods, which are also called collective goods. A public good is a good that benefits everyone in the society
To be called a public good, a good must exhibit two traits: there must be no way to exclude anyone from consuming it (nonexcludability), and one person

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