Pure Public Goods

Pure Public Goods
Author
Institution

Pure Public Goods
Pure public goods are commodities that are provided to benefit members of the general public. They are accessible to everyone and exhibits nonrivalry; this means that consumption by one person does not reduce their quantity but leaves the same amount for use by other people (Anomaly, 2018). Streetlights make an excellent example of public goods. The marginal costs of providing pure public goods are paid for through taxation or other general methods of charge such as license fees. There are expenses incurred during the installation and maintenance of the necessary equipment that makes the provision of the commodities possible. However, there are no additional expenses required to provide the goods when the number of users increases. Making the supply available to one person makes it accessible to everybody. The paradox in pure public goods is that despite having a positive marginal cost of production, some members of the public can enjoy the commodities at zero marginal costs; this is because it is impossible to exclude people who have not been charged to make the provision of the goods possible. Examples of such groups of individuals are the foreign citizens and the low-income earners as they are exempted from paying federal income taxes.

References
Anomaly, J. (2018). Public Goods and Education.
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