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​​​​​Answer these questions regarding natural disasters like fires Explain why the private sector cannot produce the...

​​​​​Answer these questions regarding natural disasters like fires

  • Explain why the private sector cannot produce the economically efficient amount of a public good.

  • If the federal government decided to increase the amount it spends on firefighting services, what would be the opportunity cost of this decision?

  • Following natural disasters that hit several states and Puerto Rico in 2017 economist Donald Boudreaux criticized politicians who called for capping the prices of water, gasoline and construction materials. Why would it be beneficial for prices of such materials to rise following such disasters?

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Answer #1

1):- Pure public good are not produce by private sector because they would be unable supply it for profit .

It is totally depend on government to decide what public good is right for the public or society.

And for this government make estimate of social benefits from public good available.

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