Why Are Private Firms Unable to Produce Public Goods

Multiple Choice

Why are private firms unable to produce public goods?

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