As an additional consumer obtains the benefits of a public good such as national defence, what happens to the benefits to existing consumers?
A) They increase in the short run, but decrease in the long run.
B) They decline.
C) They do not change.
D) They increase.

Question

Quizplus · Accepted Answer

The benefits of a public good are non-rivalrous, which means that the consumption benefits of an additional consumer do not diminish the benefits to other consumers already enjoying the public good. The benefits to existing consumers remain the same even as more people begin to enjoy the public good.

As an Additional Consumer Obtains the Benefits of a Public