Which of the Following Best Explains Why It Is Sometimes

question 23

Multiple Choice

Which of the following best explains why it is sometimes efficient to charge a positive price for the use of some products such as museums,beaches,and roads?

• A)Since these products are non-excludable,it is sometimes efficient to charge a positive price.
• B)Once these products become congested they become rivalrous,marginal cost is positive,and a positive price is then efficient.
• C)Each person consuming the product has a positive marginal benefit and should therefore pay a positive price.
• D)Since these products are excludable,marginal cost is always positive,and a positive price is appropriate.
• E)Since these products are excludable and non-rivalrous,it is always efficient to charge a positive price.

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Definitions:

Horizontal Analysis

A financial analysis technique that compares historical financial data over a series of reporting periods, or of different companies during the same period.

Certain Date

A specific, determined point in time, often mentioned in contracts and agreements.

Percentage Increase

A measure expressed as a percentage that represents the magnitude of an increase in a value or quantity compared to its original value.