A lighthouse might be considered a private good if
A)there is a second lighthouse nearby, thus preventing a monopoly.
B)the owner of the lighthouse is able to exclude beneficiaries from receiving the benefits of the lighthouse.
C)ships are able to enjoy the benefits of the lighthouse without paying for the benefit.
D)a nearby port authority is able to avoid paying any fees to the lighthouse owner.

Question

Quizplus · Accepted Answer

A private good is one that can be consumed exclusively by those who pay for it, and its owner can exclude non-payers from using it. In this case, if the owner of the lighthouse is able to exclude beneficiaries from the benefits of the lighthouse, then it is considered a private good. The other options suggest the presence of competition or free riders, which are not characteristics of a private good.

A Lighthouse Might Be Considered a Private Good If