What is a public good?

 

What is a public good?

a. Give an example of a public good.

b. What is the key market failure associated with public good provision?

What is the result of this market failure in terms of how much of the public good is provided?

Note: A diagram would go a long way in helping show that you understand the answer to this question, but it must be accompanied by a complete and intuitive description of what you have drawn.

c. How might a government entity estimate the value of the public good you chose?

d. How might they implement a policy to provide the socially optimal amount of your public good? Part 2 – You will be required to answer the following (a calculator will be necessary for basic calculations):