An open-access satellite-based wildfire monitoring and broadcast system is classified as a pure public good. Which of the following best explains why this system is considered a public good?
The service is funded entirely through national taxation rather than private subscription fees.
One community's consumption of the broadcast alerts does not reduce the availability of the information to other communities, and non-payers cannot be prevented from accessing the signal.
The system generates substantial positive externalities that lower the social cost of wildfire damage compared to the private cost of prevention.
The high fixed costs and low marginal costs of satellite operations create a natural monopoly, making private provision allocatively inefficient.
24 exam-style questions on Edexcel A A Level Economics 1.3.3 Public goods. Each one has a worked solution and a mark scheme showing where the marks go.