Private firms can hardly produce a public good profitably because of

A) liability rules and lawsuits.
B) the free-rider problem.
C) shortages and surpluses.
D) moral hazard and adverse selection.

Public Good

Goods or services that are distributed to all individuals within a society without charge, presented by either public authorities or private entities, not for profit motives.

Free-rider Problem

A situation where individuals or entities benefit from resources, goods, or services without paying for them, which often leads to under-provision of those goods or services.

Private Firms

Businesses that are owned by individuals or groups of individuals and are not controlled or operated by the government.