Public production is justified when services are socially desirable but not privately profitable—often due to scale economies or large capital requirements (e.g., the interstate highway system, orphan drugs)—so government provision is argued to enhance total utility even if it loses money, because social benefits exceed the subsidies provided.
definitionpending
Speaker
Clifford WinstonEvidence Quote
“the production of these Goods leads to social benefits that exceed whatever subsidies the public is going to provide”
Created: 6/15/2026, 9:37:54 AM
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