经济学小故事英文版

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14213104 梅雪
If related system is perfect enough, the efficiency of Private Lighthouse will be the highest. For example, government should formulate compulsory system about Lighthouse charging
The Lighthouse in Economics
Public Goods ＆ Market Failures
14213104 梅雪
At first
Local families built Lighthouse and collected fees from passing ships to maintain lighthouses and make a profit
Finally
Nobody wanted to operate Lighthouses. And the government had to provide funds to built and maintain Lighthouses.
Non-excludability Non-competitive ‘Thumb a ride’ Market failures
Then
The income and expense both increased and the Lighthouse operators still spent more than received. They had to raise fees.
However
More ships managed to avoid the fees, and employing more people to supervise would increase the cost.
IneffBiblioteka Baiduciency
Government provides public goods by levying compulsory tax from residents. However, this causes low efficiency.
The Lighthouse in Economics
Public Goods
The Lighthouse in Economics
Government Intervention
Market is not almighty, and public goods only can be provided by government.
Perfect system
However
Some ships managed to avoid paying the fees by bypassing tollgate. And the Lighthouse operator barely covered its costs
Therefore
Lighthouse operators set a team with specialized equipment to supervise and check the passing ships to pay the fees