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Unformatted text preview: incentive Solved through internalizing the externality, tax, regulations, divide up the land or permits Natural monopoly: excludable but not rival Gov provides some natural monopoly functions such as water, electricity etc. Public pools/ice rinks are provided so that low-income people can enjoy it. Uses cost-benefit analysis to determine which goods to provide * rough estimates since people tend to lie on survey/questionnaires Human worth based on wage determinants is about 10 million Market fails to allocate resources efficiently because property rights are not well established* gov regulations are needed...
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- Winter '10
- Public Good, excludable, ree-r ider problem, Uses cost-benefit analysis