Both public goods and common resources involve externalities. a. Are the externalities associated with public goods generally positive or negative? Is the free-market quantity of public goods generally greater or less than the socially efficient quantity? Cite examples in your answer. b. Are the externalities associated with common resources generally positive or negative? Is the free-market use of common resources generally greater or less than the socially efficient use? Cite examples in your answer.
Added by Jonathan C.
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Public goods are non-excludable and non-rivalrous, meaning they are available to all and one person's use does not diminish another's. The externalities associated with public goods are generally positive. This is because when a public good is consumed, it does Show more…
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