Can you explain why the following statement is false?: If a good is non-rival and non-excludable, it will never be produced by the private sector (i.e., public-sector intervention is required in order for a non-zero quantity of such a good to be produced).

Can you explain why the following statement is false?: If a good is non-rival and non-excludable, it will never be produced by the private sector (i.e., public-sector intervention is required in order for a non-zero quantity of such a good to be produced).

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section10.1: Externalities And Market Inefficiency

Problem 1QQ

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Question

Can you explain why the following statement is false?:

If a good is non-rival and non-excludable, it will never be produced by the private sector (i.e., public-sector intervention is required in order for a non-zero quantity of such a good to be produced).

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Step 1: Introduction -

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Step 2: Breakdown of Statement Part A)

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Step 3: Breakdown of Statement Part B-

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Step 4: Breakdown of Statement Part C-

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Step 5: Conclusion -

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