Asked by Steven Andekian on May 09, 2024
Verified
When it comes to ________ goods, it is important to remember only one level of output can be realized and consumers are ________ for that level.
A) public; only willing to pay the same amount
B) public; willing to pay different amounts
C) private; only willing to pay the same amount
D) private; willing to pay different amounts
Public Good
A product or service that is non-excludable and non-rivalrous, meaning it can be used by many people simultaneously without reducing its availability to others.
- Gain an insight into the critical role of willingness to pay within the realm of public goods.
Verified Answer
BK
Brittany KleinMay 15, 2024
Final Answer :
B
Explanation :
Public goods are characterized by non-excludability and non-rivalry, meaning they are available to all consumers regardless of who pays and one person's consumption does not reduce the availability to others. Therefore, consumers may value the good differently and be willing to pay different amounts.
Learning Objectives
- Gain an insight into the critical role of willingness to pay within the realm of public goods.