Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 5 - Market Failures: Public Goods and Externalities - Problems - Page 114: 7b

Answer

The quantity supplied would be 0.

Work Step by Step

The non-excludable nature of a public good such as fireworks would mean that providing the good to one consumer would make it extremely difficult or costly to exclude others from consuming the same good. Thus, there would be little to no incentive for the producers to produce public goods, as they recieve little to no returns on their expenditure. Thus, the optimum quantity to provide the public good in the private market would be zero, and they are usually provided for by the government (street lamps etc).
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