“Since a public good is enjoyed by all members of society, willingness to pay for the good will not diminish as the amount produced increases.” Evaluate and use an example to support your answer

Please provide the best answer for the statement.

This statement is incorrect. Public goods face diminishing returns like any other good. Consider the number of highways in a town, for example. Citizens of a town are very willing to pay for the first highway, as it produces large gains to the town. Successive highways produce less and less willingness to pay because the citizens face lower and lower gains from the increased number of highways. In a town of, say 20,000, 15 highways would not produce much more benefit than just 2 or 3 highways.