Answer to Question #213238 in Finance for Ompha

Question

Differentiate between private goods and public goods and then illustrate and discuss why in the provision of private good the summation is horizontal while it is vertical in the case of the provision of public good

Answer 1

Public goods are free services provided by the government or nature for the benefit of the general public. Private products, on the other hand, are those that are made and sold for profit by private enterprises. Private goods are generated by businessmen or entrepreneurs when nature or the government provide public goods.