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

Question

Quizplus · Accepted Answer

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.

When It Comes to ________ Goods, It Is Important to Remember