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Explanation of Public Goods

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What is a public good? Why does the government tend to produce public goods?

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Solution Summary

The solution defines briefly public good and the rationale why the government produces it.

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Public goods refer to products and/or services that anybody can consume as much as needed. Instances of public goods are government libraries, museums, national defense, environmentally designed surroundings, public swimming pools, GPS signals, roads and ...

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