Under federal laws, firms in many agricultural industries can force all industry members to contribute to collective activities such as industry advertising if the majority agrees. Under the Beef Promotion and Research Act, all beef producers must pay a $1 per head fee on cattle sold in the United States. This fee raises $80 million annually, which finances research, educational programs on cattle disease, and collective advertising by the industry.

(a) How might industry advertising by the beef industry be considered a public good (non-excludable and non-rival)? Please explain.

(b) How would this require a fee from ranchers as described above rather than asking every firm to voluntarily pay for the advertising? How can ranchers who choose not to pay essentially free ride on advertising by those ranchers who do pay? Please give an explanation.