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jman76316

Answer:

A merit good is a good which when consumed provides external benefits, although these may not be fully recognised – hence the good is under-consumed. Examples include education and healthcare. As can be seen, when a merit good is consumed it generates positive externalities.

The market for merit goods is an example of an incomplete market. Merit goods have two basic characteristics: Firstly, unlike a private good, the net private benefit to the consumer is not fully recognised at the time of consumption.

Merit goods are included education, welfare services, health care, housing, refuse collection fire protection, and public parks.

What is Merit good?

In distinction to pristine public goods, merit goods could be, and are, delivered through the market, but not necessarily insufficient excesses to maximize social interest.

A merit good is good that when consumed supplies external benefits, although these may not be fully recognized.

Therefore, the good is under-consumed. Illustrations contain education and healthcare. As can be glimpsed, when merit good is consumed it provokes positive externalities.

The market for merit goods is an illustration of an insufficient market. Merit goods have two basic characteristics: Firstly, unlike a private good, the net private concession to the consumer is not completely recognized at the time of consumption.

Find more information about Merit good here:

https://brainly.com/question/27180167

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