As additional consumers obtain the benefits of a pure public good,such as national defense,the benefits to the existing consumers will:
A) decrease.
B) increase.
C) stay the same.
D) increase in the short run, but decrease in the long run.

Question

Quizplus · Accepted Answer

The benefits to existing consumers will stay the same as the consumption of a pure public good by additional consumers does not decrease the benefits of the good to existing consumers. This is because pure public goods are non-excludable, meaning that consumption by one individual does not reduce the availability of the good to others. Therefore, the total benefits from the provision of the public good increase with additional consumers. This is known as the "free-rider problem," where individuals can enjoy the benefits of the public good without paying for it.

As Additional Consumers Obtain the Benefits of a Pure Public