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Chapter 11 HMWK

Think of an example of a Public Good (not a publicly provided good, but a Public Good using the definition from the chapter.)  What are the costs of providing the good?  What are the benefits? Is there another way to have the good provided? Did this chapter cause you to think of Public Goods differently?  In what way?
Review the definition of a public good before answering this - not all publicly provided goods are public goods. Parks, for example, are both rival and excludable.  Just think about Maroon Bells.
The reverse of this question is to think about a good that is provided publicly, but is not a Public Good.  How else could it be provided? Why do we choose to provide it publicly?




A public good is non-rival and non-excludable. You can't prevent someone from using it, and using it does not take away from someone else's ability to also use it. A lighthouse is a public good because many many people can see it at the same time, and none of them had to bargain in order to benefit from it. The costs of providing a lighthouse are materials for building and electricity and an employee. The benefits are that ships are alerted to rough waters, and they are able to avoid damage to their property. The surrounding community benefits by having merchants safely arrive in port for the opportunity to do business.


Non-toll roads are rival and non-excludable. You can't prevent someone from using it, but overuse that causes congestion does take away from someone else's ability to use it. Highways could be maintained by private companies who would charge tolls. I suppose the government provides it so that they can control infrastructure during a state of emergency and war.

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