What type of good allows for multiple people to consume it without diminishing the availability for others?

Public goods are characterized by two main features: they are non-rivalrous and non-excludable. When a good is non-rivalrous, it means that one person's consumption of the good does not reduce the availability of the good for others. This allows multiple individuals to benefit from the good simultaneously without diminishing its supply.

An example of a public good is national defense. When the country is defended, this protection is available to every citizen without reducing the level of security for others. In contrast, rival goods can only be consumed by one person at a time, whereas excludable goods can limit access to those who pay for them.

Understanding the nature of public goods is crucial in economics, as they often require government provision or support due to the free-rider problem, where individuals may benefit from the good without contributing to its cost. Thus, recognizing public goods is vital in discussing resource allocation and market failure.