One difference between the demand for a private good and that for a public good is that
A)with a private good, each consumer chooses the quantity she wants to consume but with a public good, each consumer chooses the price she is willing to pay for a fixed quantity.
B)with a private good, each consumer chooses the quantity she wants to consume but with a public good, everyone consumes the same quantity.
C)with a private good, each consumer receives different amounts of benefit from consuming the product but with a public good, every consumer realises the same amount of benefit from consuming the product.
D)the marginal benefit from consuming the last unit of a public good always exceeds the marginal benefit from consuming the last unit of a private good because there are externalities in the consumption of the former.

Question

Quizplus · Accepted Answer

With a private good, the consumption is rivalrous, meaning one person's consumption reduces the amount available for others. Thus, each consumer chooses the quantity she wants to consume. However, with a public good, the consumption is non-rivalrous, meaning one person's consumption does not reduce the amount available for others. Thus, everyone can consume the same quantity.

One Difference Between the Demand for a Private Good and That