A lighthouse is typically considered a good example of a public good because:
A)the owner of the lighthouse is able to exclude beneficiaries from enjoying the lighthouse
B)there is rarely another lighthouse nearby to provide competition
C)a nearby port authority cannot avoid paying fees to the lighthouse owner
D)all passing ships are able to enjoy the benefits of the lighthouse without paying

Question

Quizplus · Accepted Answer

A public good is something that is non-excludable (meaning that people cannot be easily prevented from benefitting from it) and non-rivalrous (meaning that one person's use of it does not diminish its availability to others). A lighthouse fits this definition because once it is built and maintained, all passing ships can benefit from its light without their use of it diminishing its availability to other ships, and it is difficult to exclude ships from using it. Even if a passing ship does not pay fees to the lighthouse owner, their use of the light does not prevent other ships from also being able to use it.

A Lighthouse Is Typically Considered a Good Example of a Public