Market failure key terms

Question 1

public good

Answer 1

• one individual can consume it without reducing availability to another
• non rivalry
• non excludability

Question 2

public good drawbacks

Answer 2

• can’t make a profit
• can’t bill people
• can’t stop people using it
• pay for all repairs yourself

Question 3

what is market failure ?

Answer 3

• allocation of resources is inefficient