When producers (say, of roads) are not able to make all consumers pay for enjoying their product (i. e., the roads), they tend to see a?

Question

Lance Campbell

Business

8 December, 00:23

When producers (say, of roads) are not able to make all consumers pay for enjoying their product (i. e., the roads), they tend to see a?

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Chase Leonard · Answer 1

They do not see much, if any, of a benefit of production, it is marginal at best. Furthermore, the market fails on the demand side of it, because people do not want the product, and so there is no demand. This product seems to be on the verge of failing.