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Public goods are commodities or services that are provided without profit to all members of society Distinguish between private and public goods and discuss the difference between true public goods and services, and goods and services that are paid for publicly. The two main arguments for the privatization of public goods are based on the desire to.

If managers can support public institutions and provide public goods and make money, why aren't they In some cases, the private sector can provide public goods, but in general it will not achieve the optimal level of provision. They say the answer is regulation or the answer is taxation, said henderson

The idea that firms can set themselves up for public good is viewed with suspicion—in my view for very good reasons.

Just as in the case of pure public goods, the private market does not have a mechanism for determining each person’s benefit from having such goods available And, as in the case of public goods, there are complicated ways to figure out what each person or family is willing to pay. Are there changes that would make it easier for business to contribute to the public good Would these kinds of shifts be desirable or would they have unexpected side effects?

Since private markets fail to provide public goods, governments universally take responsibility for funding or providing them The primary mechanism is taxation—compulsory contributions that ensure everyone who benefits also contributes. Producing “public goods” (such as irrigation systems for a community of farmers) often promises large enough gains to stir the creative juices of people—who, given enough freedom of action and security of rights, then figure out how to cooperate to provide them. Policymakers should always remember, though, that there are pros and cons to both private and government provision of public goods, and they should opt for the latter only when they have sound reasons to believe that it promises greater net welfare.

The role of the private sector

Some economists argue that the private sector should take the lead in providing public goods They argue that the private sector is more efficient and innovative than the government and that it is better equipped to provide these goods. A major function of governments at all levels is the provision of public goods

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