A lighthouse might be considered a private good if:
A)lighthouses were provided by private charities
B)the government taxes ship owners to provide them the lighthouses they need
C)the owner of the lighthouse refuses to be subsidised by the government
D)the owner of the lighthouse can charge nearby port authorities a fee for the lighthouse service

Question

Quizplus · Accepted Answer

Option D suggests that the owner of the lighthouse can charge a fee to the nearby port authorities for providing the lighthouse services. This implies that the lighthouse is a private good, as its access and use are restricted to those who can pay for its services. Options A, B, and C suggest some form of government intervention or subsidy, which would make the lighthouse a public good.

A Lighthouse Might Be Considered a Private Good If