To solve the problem created by public goods, society can either privatize the public good or A

Economics Dec 18, 2020

To solve the problem created by public goods, society can either privatize the public good or

A. make the good illegal

B. make the public good excludable by finding a way to make consumers pay for it

C. offer rebates to producers to make the good private

D. subsidize consumers who are excluded from consumption

Expert Solution

To solve the problem created by public goods, society can either privatize the public good or

B. make the public good excludable by finding a way to make consumers pay for it

If the government puts a price of the public good, then those who fail to pay would not enjoy the benefit derived from the good. For example, the government can erect a toll station on the public bridge to compel any person crossing the bridge to pay for its construction expenses.

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