This statement is False.
In a free market, public goods are often underproduced because of their unique characteristics. Public goods are non-excludable and non-rivalrous, meaning that individuals cannot be effectively excluded from using them, and one person’s use does not reduce availability for others. As a result, private firms may not find it profitable to produce these goods, since they cannot easily charge consumers for their use.
Instead, public goods like national defense, public parks, and street lighting are typically funded through taxation and provided by the government to ensure that they are available to everyone. In a free market scenario, without government intervention, the supply of public goods tends to fall short of the socially efficient level, leading to a potential shortage rather than an excess.