Governments usually build highways because it is difficult to exclude individuals who don't pay for the highways from using them. what type of market failure is involved? inequity. public goods. externalities. market power.

Question

Hailee Ortega

Business

28 September, 04:44

Governments usually build highways because it is difficult to exclude individuals who don't pay for the highways from using them. what type of market failure is involved? inequity. public goods. externalities. market power.

+1

Answers (1)

Know the Answer?

Joseph Franco · Answer 1

The answer is "public goods".

Market failure happens when the value instrument neglects to represent the majority of the expenses and advantages important to give and consume a good.

Public good refers to a good that is both non-excludable and non-rivalrous in that people can't be adequately rejected from utilize and where use by one individual does not decrease accessibility to others.

"Public goods" is a reason for market failure. The fundamental issue is that a few merchandise have uncommon attributes which make it troublesome for firms to profit by endeavoring to deliver and offer the products. In the meantime individuals frequently need these products.