Introduction to Economic Analysis
by R. Preston McAfee, Tracy R. Lewis
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Public Goods
Consider a company offering a fireworks display. Pretty much anyone nearby can watch the fireworks, and people with houses in the right place have a great view of them. The company that creates the fireworks can’t compel those with nearby homes to pay for the fireworks, and so a lot of people get to watch them without paying. This will make it difficult or impossible for the fireworks company to make a profit.
Citation Information
APA Format:McAfee, R. Preston., and Lewis, Tracy R.., Introduction to Economic Analysis. Retrieved Sep 2, 2010 from http://www.flatworldknowledge.com/node/29467 .
MLA Format:McAfee, R. Preston, , and Tracy R. Lewis. Introduction to Economic Analysis. 1969 . Flat World Knowledge. 2 Sep, 2010. <http://www.flatworldknowledge.com/node/29467> .
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