Asked by Derek Vowles on May 09, 2024
Verified
Once a public good is produced, everyone
A) can consume a different amount depending on their willingness to buy the good.
B) consumes the same amount and everyone's willingness to pay is the same.
C) consumes the same amount, but the willingness to pay will be different for different individuals.
D) can consume a different amount and pay different prices for the product.
Public Good
Goods or services available to all in society without charge, delivered by the government or private organizations, without the intention of making a profit.
- Familiarize oneself with the essential aspects and peculiarities of public and private goods.
- Examine the disparity between the marginal production cost and the collective willingness to remunerate for public utilities.
Verified Answer
AR
Alana RossiMay 12, 2024
Final Answer :
C
Explanation :
Public goods are characterized by non-excludability and non-rivalry, meaning once they are produced, they are available for everyone to consume without diminishing the amount available to others. However, individuals may value the good differently, leading to different willingness to pay.
Learning Objectives
- Familiarize oneself with the essential aspects and peculiarities of public and private goods.
- Examine the disparity between the marginal production cost and the collective willingness to remunerate for public utilities.