Most lighthouses are operated by the government because
A)of the free-rider problem.
B)lighthouses are no longer valued by society.
C)most lighthouses are only tourist attractions in state and national parks.
D)shipping companies would not be able to afford maintenance fees for lighthouses.

Question

Quizplus · Accepted Answer

The government operates most lighthouses because of the free-rider problem, which occurs when individuals benefit from a public good without contributing to its production or maintenance. Lighthouses provide navigation aids for ships and are essential for safe coastal navigation, but no single ship owner can afford to build and maintain a lighthouse for their exclusive use. Therefore, the government steps in to provide this public good for the benefit of all shipping companies and mariners.

Most Lighthouses Are Operated by the Government Because