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

Question

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

Quizplus · Accepted Answer

The benefits to existing consumers do not change because the consumption of national defense by an additional consumer does not reduce or diminish the benefits received by existing consumers. National defense is a non-rival public good, which means its consumption by one individual does not reduce its availability or consumption by others. Therefore, the benefits of national defense continue to be available to all consumers regardless of how many others consume it.

As an Additional Consumer Obtains the Benefits of a Public