If no one can be excluded from receiving the benefits of a good or service and the consumption of the good or service does not decrease the amount available to someone else from consuming it,then the good
A) is a private good.
B) is a common resource.
C) is a public good.
D) is a natural monopoly.
E) Both answers B and C are correct.

Question

Quizplus · Accepted Answer

The characteristic described in the question refers to a public good, which is a good that is non-excludable (meaning no one can be prevented from consuming it) and non-rivalrous (meaning one person's consumption of the good does not affect the amount available to others). Therefore, choice C is the correct answer. Choice A refers to a private good, which is excludable and rivalrous, while choice B refers to a common resource, which is non-excludable but rivalrous. Choice D refers to a different concept altogether, a natural monopoly, which occurs when it is most efficient for one firm to provide a good or service due to high fixed costs of entry.

If No One Can Be Excluded from Receiving the Benefits