A public good is a good or service for which exclusion:
A) is possible and for which marginal cost of an additional user is zero.
B) is possible and for which marginal cost of an additional user is positive.
C) cannot be applied and for which marginal cost of an additional user is zero.
D) cannot be applied and for which marginal cost of an additional user is positive.

Question

Quizplus · Accepted Answer

A public good is one that is non-excludable, meaning individuals cannot be prevented from using it, and non-rivalrous, meaning the consumption of the good by one individual does not reduce the amount available for others. Therefore, exclusion cannot be applied, and the marginal cost of an additional user is zero, as providing the good to an additional user does not increase the cost of providing it to others. Choice A and B describe private goods, which are both excludable and rivalrous. Choice D describes a common-pool resource, which is rivalrous but non-excludable.

A Public Good Is a Good or Service for Which