Public goods Flashcards
1
Q
What are the 2 characteristics of pure public goods?
A
- Non excludable
- Non-rival
2
Q
Assume an outdoor music concert in Hagley Park is an example of pure public good. Explain
the market failure that could occur if the council tries to charge entry into the outdoor concert
A
The concert will suffer from the free-rider. Meaning fewer people will pay to attend the concert than would have if it was excludable
