What is a Merit Good?

• What is a Merit Good?:

  • A merit good is one that is deemed to be beneficial for society but is under provided by the market.  ​
• A merit good is associated with positive externality of consumption
• What is a Merit Good?

  • A merit good is one that is deemed to be beneficial for society but is under provided by the market.  ​
• What is a Merit Good?:

  • A merit good is one that is deemed to be beneficial for society but is under provided by the market.  ​
  • Therefore, the market fails to fully supply that good to meet the needs of society.​
• • A merit good will operate where social benefit is greater than private benefit.​