Asked by Mathis Vaughan on Apr 25, 2024
Verified
Some goods, such as lighthouses, can switch between being public goods and being private goods depending on the circumstances.
Public Goods
Goods that are non-excludable and non-rivalrous, meaning they are available for everyone to use and one person's use does not reduce availability to others.
Private Goods
Goods that are both rivalrous and excludable, meaning consumption by one person reduces availability for others and access can be restricted.
- Learn the essential elements of public goods, private goods, common resources, and understand the demarcations that distinguish them.
Verified Answer
KG
Kevin GallagherMay 01, 2024
Final Answer :
True
Explanation :
Lighthouses can be considered public goods because they are non-excludable and non-rivalrous, meaning anyone can benefit from them without reducing their availability to others. However, through mechanisms like charging ships for navigation services, they can be operated as private goods, where access is restricted to paying customers, thus depending on the circumstances, they can switch between being public and private goods.
Learning Objectives
- Learn the essential elements of public goods, private goods, common resources, and understand the demarcations that distinguish them.
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