Which of the following is NOT a characteristic of a public good? ( )
A. It requires resources to produce.
B. It is not diminished or depreciated as additional people consume the good.
C. Its benefits cannot be withheld from anyone.
D. It is a free good with zero opportunity cost.
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Which of the following would be the best example of a public good? ( )
A candy bar.
B. A painting by Monet.
C. A beautiful sunset.
D. A crowded beach.
To achieve the optimal provision of public goods ( )
A. the market should be allowed to find its equilibrium without government intervention.
B. the government must limit the provision of the goods.
C. the government must tax producers of these goods.
D. the government must either provide the goods or subsidize their production.
If government officials break a natural monopoly up into several smaller firms, then the average costs of production will decrease. ( )
When its variable costs are less than total revenue, a firm should shut down. ( )
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