Unformatted text preview: Papa knows best Ch 5 - Public goods Pres Bush announcement selling National defense to Mercenaries Inc. Privatization. What would happen. Responses Key Characteristics Not possible to exclude Not desirable to exclude(mc of consumption is 0==> price=marginal cost). Tie into discussion of efficiency. Pareto improving to have everyone consume all that is available. Not possible to exclude: discuss, examples Free Rider problem., two example from 380 of prisoner's dilemma. Not desirable to exclude: discuss, examples...
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This note was uploaded on 07/08/2010 for the course ECON 275 taught by Professor Mcintyre during the Winter '05 term at BYU.
- Winter '05