Question

Why are private companies unlikely to provide public goods

Answer 1

Private companies are unlikely to provide public goods because they cannot charge people for their use. Public goods are nonexcludable and nonrivalrous, meaning that excluding people from using them is costly or impossible and one person's use does not diminish availability for others.

Step-by-step explanation:

Private companies are unlikely to provide public goods because public goods are nonexcludable and nonrivalrous. Nonexcludable means that it is impossible or very costly to exclude people from using the good or service. Nonrivalrous means that one person's use of the good or service does not reduce its availability to others. Because private companies cannot charge individuals for using public goods, there is no incentive for them to produce and provide these goods.

Answer 2

Goods require a different consumer market.

Step-by-step explanation:

Goods are of higher quality and are more expensive to produce . It does not meet the needs or will allow everyday consumers to purchase them so they have a set target group of customers.