Public television has trouble raising money for its services. This problem exists because:
the services it provides have less value than their costs. of moral hazard. public television is a good example of a signaling/screening problem. television is a public good.
Suppose that three producers are competing for a set of resources. Producer A can turn these resources into goods worth $20.00 to consumers (product A), Producer B can turn them into goods worth $22.00 (product B), and Producer C can turn them into goods worth $25.00 (product C).
Products A and C are public goods. The total value of each is equally divided among twenty different consumers. B is a private good. In this case, which good can we expect to see produced in the market?
Product A Product B Product C All have an equal chance of being produced.