Lighthouses are considered: Group of answer choicesprivate goodmarket goodcommon resourcespublic good
Question
Lighthouses are considered: Group of answer choicesprivate goodmarket goodcommon resourcespublic good
Solution
Lighthouses are considered a public good.
Here's why:
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Non-excludable: Once a lighthouse is built, the service it provides (guidance to ships) can't be restricted to only some ships. All ships, regardless of whether they have paid for it, can use the light from the lighthouse for navigation.
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Non-rivalrous: The use of the lighthouse by one ship does not reduce its availability to other ships. Multiple ships can use the light from the lighthouse at the same time without affecting each other's usage.
These two characteristics - non-excludability and non-rivalry - are the defining features of a public good.
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