If the maintenance fees for a lighthouse are paid in full each year by charging port fees, then the lighthouse is

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BlackTom AI · Accepted Answer

First, restating the problem helps set the stage: the question asks about the classification of a lighthouse whose maintenance fees are covered annually by charging port fees.
Since the scenario describes a lighthouse funded by port fees, we can consider its characteristics in the framework of public goods.
A lighthouse typically provides a service that is nonrivalrous—one user's enjoyment of the light does not significantly reduce the availability of the light to others. This means that additional ships benefiting from the lighthouse do not diminish the service for others.
Additionally, a lighthouse is usually nonexcludable: it is impractical to prevent ships from benefiting from the light once it is available, especially for those at sea who cannot be easily barred from using the service.
With these two properties in mind, the lighthouse fits the classic public-goods profile of being nonrivalrous and nonexcludable, which aligns with the provided correct answer.
Regarding the funding mechanism—charging port fees to cover maintenance—this financing approach is a separate consideration about how the good is funded, not about its fundamental service characteristics. The key classification remains based on marginal consumption and exclusion possibilities, not on revenue sources.
If there were alternative options, they would need to be evaluated against these two core attributes: does one user’s consumption reduce others’ ability to consume (rivalry), and can people be meaningfully excluded from consumption (excludability)? In this case, the lighthouse exhibits both nonrivalry and nonexcludability, hence the stated correct characterization.

ECON&201 15109 Ch. 13 Assignment

If the maintenance fees for a lighthouse are paid in full each year by charging port fees, then the lighthouse is

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