Private firms cannot profitably produce a public good because of: A) liability rules and lawsuits. B) inflation and unemployment. C) nonrivalry and nonexcludability. D) positive and negative externalities.
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Step 1: Private firms cannot profitably produce a public good because public goods exhibit nonrivalry and nonexcludability, meaning that once the good is provided, individuals cannot be excluded from enjoying its benefits and one person's consumption does not Show more…
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