How can Pure Public Goods cause market failure?

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Created by
Ricky £

Cards (1)

  • How can Pure Public Goods cause market failure?:
    • Pure Public goods are non excludable which means that it is not possible to provide a good or service to one person without it being available for others to benefit from
    • As a result, private sectors cannot charge a market price and supply public goods at a profit
    • The effect of a free rider problem is that pure public goods lead to missing markets