Asked by Aubrey Hadley on Jun 29, 2024

verifed

Verified

Sometimes, public goods whose benefits are less than their costs still get produced because

A) the marginal benefit is still larger than the marginal cost.
B) of externalities in production.
C) the benefits accrue to politically powerful government officials and their constituents.
D) of market failures.

Public Goods

Public goods are those that are non-excludable and non-rivalrous, meaning they can be used simultaneously by more than one person without diminishing the supply.

Politically Powerful

Individuals, organizations, or entities that possess a significant influence over political decisions, policies, and outcomes.

  • Understand the concepts of externalities and how they impact the efficient provision of public goods.
verifed

Verified Answer

ZK
Zybrea KnightJul 05, 2024
Final Answer :
C
Explanation :
Public goods that are less beneficial than their costs may still be produced due to political reasons, where the benefits are directed towards influential government officials and their supporters. This is a reflection of how political motivations and the distribution of benefits to specific groups can drive the production of certain public goods, regardless of their overall cost-effectiveness or benefit to the general public.