1. The Effect of Invisible Hand to Society
... for the poor. Especially, in the case of merit goods, the market will not produce at the social optimum level. Profit motivated producers would only produce education for those who can pay. If you start life with very little, and do not even get a good education, then there will be very little protection from destitution. Now, take the case of public goods. No producers would want to produce ... goods, which are unable to be charged for, for example, Infrastructure, street lightning and Lumpini Park. Hence, there is a shortage of public goods. In the case of negative externality ... it...
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