Question

9. Why is government intervention required in a market for a public good.

Answer 1

Firstly let us have a brief idea that what is public good .

Public good is that type of good which is non Rival and non excludable in nature.

Non rival means having no competition with others and the main motto is to generate profit

Non excludable means open for all without any discrimination .

So government generally intervene in the market of public good to have a fair distribution of public good in the general public .

There should be maximization of social welfare and the situation like negative externality can be Avoided.