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Figure: Traffic Lights in Plymouth
-(Figure: Traffic Lights in Plymouth) Look at the figure Traffic Lights in Plymouth. Plymouth has 1,000 residents. Each of the residents has the same individual marginal benefit per traffic light. Without government intervention, the town will have _____ traffic lights.
A) 0
B) 4
C) 8
D) 12

Question

Use the following to answer questions:
Figure: Traffic Lights in Plymouth 
-(Figure: Traffic Lights in Plymouth) Look at the figure Traffic Lights in Plymouth. Plymouth has 1,000 residents. Each of the residents has the same individual marginal benefit per traffic light. Without government intervention, the town will have _____ traffic lights.
A) 0 
B) 4 
C) 8 
D) 12

Quizplus · Accepted Answer

Without government intervention, public goods like traffic lights are typically underprovided because individuals do not have an incentive to pay for them, leading to a situation where no traffic lights are installed.

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