Asked by Vasilina Vorotnikova on Jun 14, 2024
Verified
A public good:
A) can be profitably produced by private firms.
B) is characterized by rivalry and excludability.
C) produces no positive or negative externalities.
D) is available to all and cannot be denied to anyone.
Rivalry
(1) The characteristic of a private good, the consumption of which by one party excludes other parties from obtaining the benefit; (2) the attempt by one firm to gain strategic advantage over another firm to enhance market share or profit.
Excludability
The characteristic of a private good, for which the seller can keep nonbuyers from obtaining the good.
- Understand the concepts of public goods, including non-excludability and non-rivalry.
Verified Answer
GY
Gillian YoungJun 17, 2024
Final Answer :
D
Explanation :
A public good is defined by being non-rivalrous, meaning consumption by one person does not diminish the ability for others to consume it, and non-excludable, meaning it is available to all and cannot be denied to anyone. Therefore, D is the correct choice as it correctly identifies that a public good is available to all and cannot be denied to anyone.
Learning Objectives
- Understand the concepts of public goods, including non-excludability and non-rivalry.