Question

Which of the following is NOT a reason that private firms do not provide public goods?
A) the free-rider problem.
B) public goods are unprofitable.
C) the price system doesn’t assign the cost of public goods to all consumers.
D) the government refuses to grant sudsidies to firms who provide public goods.

Answer 1

In order to classify each of the following as a public or private good, the term public good must first be defined. A public good is a good possessing two characteristics: a) Once the good is provided it is difficult to exclude or prevent others from consuming the good, even if they do not pay for it. b) Consumption of the good by 

Answer 2

The correct answer would be option D,  the government refuses to grant subsidies to firms who provide public  goods.

The above mentioned statement is not a reason that private firms do not provide public goods.

Explanation:

Public goods are the goods or services that are used by all the citizens of the country. Public goods are provided or placed at the public places to be used by the public. These public goods are built and provided by the Government through the taxpayer's money.

Following are the public goods:  

• Highways
• Sanitation
• National Defense
• Parks, etc

There could be a lot of reasons that private firms do not provide public goods., but because government refuses to grant subsides to firms who provide public good, is not true at all.

Learn more about Public Goods at:

brainly.com/question/5991846

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