Question

As of 2017, private firms have constructed most of the infrastructure for high-speed Internet connections while governments have constructed most highways. Is it still possible that the infrastructure for high-speed Internet connections is a public good despite this fact? Briefly explain.

A) Yes, because private provision does not necessarily negate the public good characteristics.
B) No, because public goods must be provided exclusively by the government.
C) Yes, only if the infrastructure is free for all users.
D) No, because public goods cannot be provided by private firms.

Answer 1

The infrastructure for high-speed Internet connections can still be a public good even if it is constructed by private firms, as the defining characteristics of a public good are nonexcludability and non-rivalry, not who constructs it.

Step-by-step explanation:

The question of whether the infrastructure for high-speed Internet connections can be a public good despite being constructed mostly by private firms can be approached by understanding the definition of a public good. According to economists, a public good is characterized by nonexcludability and non-rivalry. This means that it's difficult or impossible to prevent anyone from using the good (nonexcludable), and the use of the good by one individual does not diminish its availability to others (non-rival).

Given these characteristics, the correct answer to the student's question is: A) Yes, because private provision does not necessarily negate the public good characteristics. Private firms can indeed provide a public good if they manage to offer access in a way that aligns with the qualities of nonexcludability and non-rivalry. The fact that the infrastructure is constructed by private firms doesn't preclude it from being a public good as long as the firm or another entity ensures that the good is available to the public in accordance with those characteristics.