A Defining Attribute of a Public Good Is That

question 68

Multiple Choice

A defining attribute of a public good is that:

• A)to consume this good,consumers must reduce consumption of other goods.
• B)consumers can easily enforce ownership rights over such goods.
• C)it is not possible to exclude people from the enjoyment of this good.
• D)the consumption by one person influences the consumption of others.

---

Definitions:

Marginal Cost

The extra expenditure linked to producing one more unit of a product or service.

Marginal Benefit

The additional benefit received from consuming one more unit of a good or service.

Overproduction

The condition where production exceeds the demand, leading to surplus inventory, lower prices, and potential economic inefficiencies.

Marginal Benefit

The additional satisfaction or utility gained by consuming or producing one more unit of a good or service.