zakPOlo
contestada

In two to three sentences, explain why the private businesses will not provide public goods.

Respuesta :

 Public goods are goods which are non-excusable no one can be denied from using it and non-rival use by one wouldn't affect the consumption by another. Because of this, people want to use the good but not pay for it as they know, once the good is provided, they can't be excluded from using it. This is called Free riding. Private companies will not be able to tackle the problem of free riding as they won't know what rate to charge and how to make everyone pay. 
Govt. can, however do this easily.
Miyuko

Answer:

Private businesses do not have to provide public goods because they have the property right to decide how a resource is used.  A property right to a good or service includes the right to exclude others.

Explanation: