If the government does not provide it, the quantity of a nonexcludable good that private firms will choose to produce is
A. zero.
B. more than the optimal amount.
C. the optimal amount.
D. optimal only if property rights are assigned.
E. optimal only if the industry is competitive.
Answer: A
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Suppose Sarah owns a small company that makes wedding cakes. The table below shows how Sarah's total cost varies depending on the number of wedding cakes she makes each day.Number ofCakes Per DayTotal CostPer Day0$1001$1802$2203$3004$4005$5206$660If the market for wedding cakes is perfectly competitive, and wedding cakes sell for $95 each, then at her profit-maximizing level of output, Sarah will earn a ________ of ________ per day.
A. loss; $100 B. profit; $15 C. loss; $15 D. profit; $285
By 1825, which area in the New World had the greatest portion of slaves?
a. Spanish colonies b. The West Indies c. The United States d. Brazil
A lobbyist for the coal industry asks Congress to limit environmental constraints on coal-burning plants. This is an example of
a. the median-voter model b. rent seeking c. perfect competition d. monopoly e. public-interest legislation
The money supply is the amount of money:
A. that banks keep on hand. B. that banks keep on hand beyond the reserve requirement. C. available in the economy. D. available for banks to lend.