The government often intervenes when private markets fail to provide a socially optimal level of certain goods and services. The action taken by the government is often different for public goods than it is for common resources. Give an example of a public good and a common resource, and explain how the government might intervene in each case to provide a more socially desirable level of output.

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1 Public Goods These are goods that are both nonexcludable ... View the full answer