As an additional consumer obtains the benefits of a public good, the benefits to existing consumers:
A)decrease.
B)increase.
C)increase in the short run but decrease in the long run.
D)do not change.
E)decrease in the short run but increase in the long run.

Question

Quizplus · Accepted Answer

The benefits to existing consumers do not change as additional consumers obtain the benefits of a public good because the consumption of the good by one individual does not reduce the amount available for others to consume. Therefore, the total benefits received by all consumers remain constant, regardless of the number of individuals consuming the public good.

As an Additional Consumer Obtains the Benefits of a Public