Why Are Private Firms Unable to Produce Public Goods

Multiple Choice

Why are private firms unable to produce public goods?

A) The tragedy of the commons means that private firms produce an inefficient amount of public goods.
B) The marginal cost of production is too high for private production to be possible.
C) Because the government outlaws private firms from producing them.
D) They can produce these goods, but they would not earn any revenue because of the free-rider problem.
E) None of the above answers is correct.