Asked by
Qudashia Mccoy
on Dec 11, 2024Verified
When a good is nonexcludable,
A) it is impossible or very costly to exclude nonpaying customers from receiving the good.
B) individuals will have an incentive to become free riders.
C) it will be difficult for a private firm producing the good to generate revenue sufficient to cover the cost of production.
D) all of the above are true.
Nonexcludable
describes a good or service that cannot be withheld from individuals who do not pay for it, characteristic of public goods.
Free Riders
Individuals who benefit from resources, goods, or services without paying for them, relying on others to bear the cost.
Private Firm
A business owned by private individuals or groups, not controlled by the government, and operated for profit.
- Comprehend the distinction between public goods and private goods.
- Identify the issue of free-riders and its consequences for public good distribution.
Verified Answer
JM
Learning Objectives
- Comprehend the distinction between public goods and private goods.
- Identify the issue of free-riders and its consequences for public good distribution.