Question

At some restaurants, patrons who use wifi are asked to limit their laptop time during peak lunch hours. Most of the day, everyone is welcome to wifi time and a table. It seems as if these restaurants recognize that table space and wifi access during peak times can be:

a. a private approach to taxing externalities

b. a quasi public good

c. a common resource

d. a. public good

Answer 1

Option B.

• These restaurants recognize that table space and wifi access during peak times can be a quasi public good.
• Quasi public goods are also called partial public and partial private goods or near public goods. They are termed so because they act as partial public goods when the demand is at a peak level.
• Here during the peak time, the demand for WiFi and tables increase. Since lunch time is a time when the demand is at a peak level, they are considered as quasi public goods.