GOVERNMENT AS A

PRODUCER
Goods that are not likely Product or service that
to be provided by the are considered
private sector because beneficial for the
they’ll not get benefits population

Non-rival: may be consumed

Goods under provided
1 PUBLIC GOODS 2 MERIT GOODS
by one costumer but can’t
be prevented to by by the private sector.
consumed by others.

Non-excludable: non-
Libraries,
payable costumers DIFFERENT FORMS OF
cannot be prevented mussems
3 GOVERNMENT’S
INTERVATION

PUBLIC GOODS KEY INDUSTRIES NATURAL MONOPOLIES ESSENTIAL PRODUCTS

Situation when a bigger firm
people can consume Vital industry for the can provide to the entire market
Goods and services
them without paying economy of the country a lower cost than multiple considered ESSENTIAL
Private sector NO incentive industries

Because of fixed high Education

Streetlights Financial services costs
healthcare
fire service Defense industry RENFE
system