One difference between the demand for a private good and that for a public good is that
A) with a private good, each consumer chooses the quantity she wants to consume but with a public good, everyone consumes the same quantity.
B) with a private good, each consumer chooses the quantity she wants to consume but with a public good, each consumer chooses the price she is willing to pay for a fixed quantity.
C) with a private good, each consumer receives different amounts of benefit from consuming the product but with a public good, every consumer realizes the same amount of benefit from consuming the product.
D) the marginal benefit from consuming the last unit of a public good always exceeds the marginal benefit from consuming the last unit of a private good because there are externalities in the consumption of the former.

Question

Quizplus · Accepted Answer

The key difference between private and public goods is in how they are consumed. Private goods are consumed individually, allowing consumers to choose the quantity they desire. In contrast, public goods are consumed collectively, meaning everyone benefits from the same level of provision without the ability to exclude others, leading to a scenario where each individual consumes the same quantity.

One Difference Between the Demand for a Private Good and That