Question

The opportunity cost of providing a public good to an additional individual is A. infinite. B. high because of the exclusion principle. C. impossible to determine. D. zero.

Answer 1

D-Zero

Explanation:

Public good are naturaly provided by government.

Their consumption is naturally non-exclusive and non-rival, meaning, they can be consumed same time by a large number of people. For examples these goods are street lights and highways.

Saying that, the large number of people who consume this goods at the same time, the opportunity cost of the government providing the goods to an additional user is zero because an additional consumer do not call for the additional goods.

For example, if a highway is properly lit and currently there are 2,000 users, an additional user would not call for any additional lane or street lamp but would rather use that which is already in existence, hence zero opportunity cost.