Answer the following statement(s) true (T) or false (F)

1. Use of a common property is nonrivalrous.
2. A nonexcludable good, once produced, can be made available to others at no additional cost.
3. Private markets tend to undersupply nonrivalrous goods because of free riding.
4. Once it has been produced, the efficient price for a nonrivalrous good is zero.
5. An HBO broadcast over cable television is rival in consumption but non-excludable.


1. False
2. False
3. False
4. True
5. False

Economics

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