How do quasi-public goods differ from pure public goods? Give examples of both types. Explain the rationale as to why quasi-public goods are often provided by government rather than private businesses

Question

Please provide the best answer for the statement.

Answer 1

A pure public good is characterized by non rivalry and nonavailability. The benefits are also not reduced when one person benefits from it, so there is non rivalry. Once this type of national security is provided, it is available for benefit by all, without exclusion. An example would be the war on terrorism. Quasi-public goods have the characteristics of both private and public goods which means that to a certain degree rivalry and exclusion do apply. Quasi-public goods such as fire protection, schools, libraries, and trash collection can be provided by private firms. The reason why such quasi-public goods are often provided by government is that there can be substantial positive externalizes from them for society and if left to the market they would be under provided or under produced.