Question

What is critical in determining whether something is produced as a public good?

whether the market is willing to provide it

whether the benefits to society are greater than the total cost

whether the benefits to society are equal to the total cost

whether the government is willing to provide it

Answer 1

Whether the benefits to society are greater than the total cost.

Answer 2

The correct answer is: "whether the benefits to society are greater than the total cost"

The provision of some specific goods or services is sometimes reserved to public corporations or institutions, because due to the specific characteristics of the product or of iyd production process, private firms to do not make profit from their production and sale, but still the availability of such product provides benefits to society which are larger than their monetary cost.