Public good

In economics, a public good is a good that is hard or even impossible to produce for private profit, because the market fails to account for its large beneficial externalities. By definition, a public good possesses two properties:

Efficient production levels of public goods

Regardless of the method of attaining public goods production, the efficient level of such production is still susceptible to economic analysis. For instance, the Samuelson condition calculates the efficient level of public goods production to be where the ratio of the marginal social cost of public and private goods production equals the ratio of the marginal social benefit of public and private goods production.

Related Topics:
Samuelson condition - Marginal social cost - Marginal social benefit

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