The Pawnee Video Dome is Failing
The Pawnee Video Dome is failing and going out of business. Leslie is trying to find tax breaks to keep him afloat, but Ron says the market is signaling that the company is not providing enough value to consumers and deserves to fail. If companies provide a social good (like intellectual conversations) then governments may step in and subsidize the production of the service.
See more: bailouts, competition, growth, invisible hand, market exit in LR, positive externalities, product differentiation, role of government, social benefits, subsidies, technology