The Lighthouse Everyone Can Use

Written by Studio AM.

A lighthouse sends a warning beam across dark water. When one ship uses that light to avoid rocks, the beam remains available to another ship. One captain's benefit does not use up the signal.

It can also be difficult to show the beam only to ships that paid for it. Once the light shines, many vessels nearby can see it. Economists use features like these to describe a public good. One person's use does not greatly reduce use by others. Excluding non-payers may also be difficult.

The term does not mean the lighthouse is free to build or maintain. Workers, equipment, and energy still have costs. The example instead explains why collecting payment from each user can be hard and why communities may support a shared service together.

Questions

Choose an answer. The explanation appears after you answer.

  1. Question 1 of 4

    What is the main idea of the passage?

  2. Question 2 of 4

    Why can charging each ship be difficult?

  3. Question 3 of 4

    What does “excluding” mean here?

  4. Question 4 of 4

    What cost does the passage name?

Score: none answered yet.

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