Unlike a private good, a public good
A) has no opportunity costs.
B) has beneﬁts available to all, including nonpayers.
C) produces no positive or negative externalities.
D) is characterized by rivalry and excludability.

Question

Quizplus · Accepted Answer

A public good is a good or service that is non-excludable and non-rival, which means that everyone can benefit from it and using it does not reduce its availability for others. This makes it difficult to charge individuals for the good or service, as non-payers can still benefit from its production. Therefore, public goods have benefits available to all, including non-payers. Option A is incorrect as public goods have opportunity costs, regardless of their non-exclusivity or non-rivalry. Option C is incorrect as public goods can produce both positive and negative externalities. Option D is incorrect as public goods are non-excludable and non-rival, which means they are not characterized by rivalry and excludability.

Unlike a Private Good, a Public Good