It could happen: imagine President Trump proposing, after the final episode of t
ID: 1142551 • Letter: I
Question
It could happen: imagine President Trump proposing, after the final episode of the HBO series “Game of Thrones” airs, that the federal government pay the show’s producers for five more seasons. A tweet from the President might state: “We pay for all kinds of benefits Americans don’t even use. But this show – which is tremendous, by the way – is a genuine public good, according to economic theory.” Would that tweet be an appropriate use of the market-failure concept, “public goods”? Why or why not?
Explanation / Answer
Ans
Simply trumphs statement is not enough. But we must see its characteristics. It must non excludable and non rival. But in reality it is excludable as it is available on paid TV network. Further if it is too much popular market may provide for it due to greater demand pressure.
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