Explain the relationship between public finance and market
failure.
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Economics
Explain the relationship between public finance and marketfailure.
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Public finance is generally concerned with public good It is a other way to speak public good Public goods is a cause of market failure The basic problem is that some goods have special characteristics which make it difficult for firms to make money by trying to produce and sell the goods At the same time people often want these goods For instance one defining characteristics of a public good is that a persons consumption of it will not make it unavailable for another person This is known as nonrivalry in consumption GPS signals have this property My use of GPS signals will not prevent you from also using the signals This is different
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