Economics · Public Goods Theory

Examine the following statements on the theory of public goods and the Samuelson condition: (I) A good is a pure public good if and only if it is both non-rival and non-excludable in consumption. (II) Club goods are excludable but non-rival up to the point of congestion. (III) The Samuelson condition for optimal public good provision equates the sum of marginal rates of substitution (ΣMRS) to the marginal rate of transformation (MRT). (IV) Private markets systematically over-supply public goods relative to the social optimum due to the free-rider problem. Identify the correct statements: