If college sports are a public good, what can you say about the amount of it...
If college sports are a public good, what can you say about the amount of it a university will supply?
| A |
If college sports are a public good then the market will make enough quantity to satisfy what is the socially optimal level. |
|
| B |
If college sports are a public good then there is a market breakdown. The market will produce a lower quantity than what is the socially optimal level. |
|
| C |
If college sports are a public good then the market will make a quantity greater than what is needed to satisfy what is the socially optimal level. |
Homework Answers
B If college sports are a public good then there is a market breakdown. The market will produce a lower quantity than what is the socially optimal level.
(If they were a public good then they would cause positive externality due to which they would be undersupplied.)
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