If a Good Is a Public Good

question 54

Multiple Choice

If a good is a public good,

• A)anyone can be excluded from enjoying its benefits.
• B)no one can be excluded from enjoying its benefits.
• C)consumers must pay a high price to enjoy its benefits.
• D)consumers pay a low price.
• E)economies of scale exist over the entire range of output for which there is a demand.

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Definitions:

Wage Rate

The standard amount of pay given for work performed, often expressed as an amount per hour, day, or other unit of time.

Profit-maximizing

The process or strategy of adjusting production and sales to achieve the highest possible profit under given market conditions.

Product Price

The monetary cost consumers are required to pay to acquire a good or service.

Market Wage Rate

The prevailing rate of pay for a particular job in a specific market or geographical area.