What is the difference between club goods and common pool resources? Cite one example of each type of good
What will be an ideal response?
Club goods are highly excludable but non-rival in consumption while common pool resources are non-excludable but rival in consumption. One example of a club good is pay-per-download Web sites and an example of a common pool resource is a natural lake.
You might also like to view...
A profit-maximizing monopolist will never produce at an output level where: a. demand is elastic
b. it suffers economic losses in the short run. c. demand is inelastic. d. marginal cost is less than average total cost.
In a natural monopoly, and in platform monopolies that have natural monopoly elements, the average cost:
A. increases with additional production. B. remains constant with additional production. C. vacillates up and down with additional production. D. decreases with additional production.
Why aren’t the tools of product market analysis directly applicable to the resource market?
What will be an ideal response?
If the interest rate is positive, the present value of a stream of payments is
A. unrelated to the stream of actual payments over time. B. greater than the sum of the actual payments over time. C. less than the sum of the actual payments over time. D. equal to the sum of the actual payments over time.