When One Person Consumes a Nonexcludable Good

question 18

Multiple Choice

When one person consumes a nonexcludable good,

• A) others cannot be prevented from also consuming it.
• B) it can be provided to others for no additional cost.
• C) the amount available for others to consume is reduced.
• D) any other users will receive zero economic rent from it.

---

Definitions:

Cost of Goods Sold

The total cost of manufacturing or purchasing the products a company has sold during a specific period.

Return Ratio

A measure of the profitability or effectiveness of an investment, calculating how much returns are gained relative to the investment's cost.

Common Stockholders' Equity

The portion of a company's equity that is attributable to the holders of its common stock.

Leverage

The use of debt to increase the return on an investment.