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Jack Decides to Build a Lighthouse Close to a Nearby

Question 91

Multiple Choice

Jack decides to build a lighthouse close to a nearby port.If he turns the light off, ships avoid that port.Which statement is true?


A) the port owner can free-ride on the service provided by Jack
B) the lighthouse Jack has built is more like a private good
C) the service that Jack provides is non-excludable
D) all of the above statements are true

Correct Answer:

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