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3Which of the following is an example of a public good.
4-23 Externalities An externality is a cost or benefit accruing to a third party external to the market transaction Positive externalities Too little is produced Demand-side. 4-22 The Reallocation Process Government Taxes individuals and businesses Takes the money and spends on production of public goods LO4. Answer The two cases of market. 2 Answer With reference to the graph when competitive markets are in equilibrium the market forces of demand and supply are used to allocate resources where goods are sold at price P0 and quantity Q0. Public Goods and Externalities. Market failures- public goods externalities.
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