Why are private companies unlikely to provide public goods?

Economics Dec 17, 2020

Expert Solution

Private companies do not provide public goods, because they can not turn a profit off of the good. In a market economy, the goal of business and corporations is to provide items consumers demand while turning a profit. A public good is a necessity of society, but it is unfair for a company to charge for it, or the company can not turn a profit and fail.

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