When producers (say, of roads) are not able to make all consumers pay for enjoying their product (i. e., the roads), they tend to see a?

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Business

Pranav Norton

6 August, 15:27

When producers (say, of roads) are not able to make all consumers pay for enjoying their product (i. e., the roads), they tend to see a?

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Cade Hogan · Answer 1

They do not see much, if any, of a benefit of production, it is marginal at best. Furthermore, the market fails on the demand side of it, because people do not want the product, and so there is no demand. This product seems to be on the verge of failing.