Unlike a private good. a public good


Saved Unlike a private good, a public good Multiple Choice is characterized by rivalry and excludability. produces no positiv

Answer

A good is termed as public good if it poses two characteristics: non-excludability and non-rivalry. Non-excludability refers to the fact that it is not possible to exclude anyone from consuming the goos. The non-rivalry implies that consumption of the good by anyone does not affect the consumption of others. Then this also implies that the public good once produce can be enjoyed by all, those who paid for the good and those who don’t.

  • The good is not characterized by rivalry and excludability.
  • The public good has an only positive externality, a negative externality will not give rise to free rider problem, a distinct feature of public good that arises when non-payer enjoys the same benefit of a good as a payer.
  • Every good has the opportunity cost of production ’cause resources are limited. Producing one implies not producing another one.

Therefore, the correct option is: has benefit…including nonpayers

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