The non-excludable characteristic of a public good results in market failure because
it is impossible to prevent non-payers from consuming the good, leading to the free-rider problem and market non-provision.
consumption by one individual reduces the quantity available to others, causing rapid depletion of resources.
private firms can easily charge prices that reflect the full marginal social benefit of the good.
the state is unable to calculate the opportunity cost of providing the public good.
378 exam-style questions on AQA A Level Economics 1.8 The market mechanism, market failure and government intervention in markets, covering 1.8.1 How markets and prices allocate resources, 1.8.2 The meaning of market failure, 1.8.3 Public goods, private goods and quasi-public goods, 1.8.4 Positive and negative externalities in consumption and production, 1.8.5 Merit and demerit goods, 1.8.6 Market imperfections, 1.8.7 Competition policy (A-level only), 1.8.8 Public ownership, privatisation, regulation and deregulation of markets (A-level only), 1.8.9 Government intervention in markets, and 1.8.10 Government failure. Each one has a worked solution and a mark scheme showing where the marks go.