Why has a lighthouse long been considered an example of a public good
A)The owner of the lighthouse is able to exclude beneficiaries from enjoying the lighthouse.
B)There is rarely another lighthouse nearby to provide competition.
C)A nearby port authority cannot avoid paying fees to the lighthouse owner.
D)All passing ships are able to enjoy the benefits of the lighthouse without paying.

Question

Quizplus · Accepted Answer

A lighthouse is considered a public good because it provides a non-excludable benefit to all passing ships, regardless of whether they pay for it or not. It is also a good example of a natural monopoly, as there is typically only one lighthouse nearby to provide this service. Therefore, choices A, B, and C are incorrect.

Why Has a Lighthouse Long Been Considered an Example of a Public