Question

A lighthouse might be considered a private good if A. the owner of the lighthouse is able to exclude beneficiaries from receiving the benefits of the lighthouse. B. ships are able to enjoy the benefits of the lighthouse without paying for the benefit. C. a nearby port authority is able to avoid paying any fees to the lighthouse owner. D. there is a second lighthouse nearby, thus preventing a monopoly.

Answer 1

Answer:

The correct answer is option A.

Explanation:

A private good is that good which must be owned in order to consume. The owner of the private good can exclude others from consuming it. It is also rivalrous in nature, which means that if one person is consuming it the others can not. These goods have private ownership.

The lighthouse might be considered private good if the owner is able to exercise his ownership rights and exclude others from using it.