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.

---

Definitions:

Purely Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product, leading to no single buyer or seller having control over prices.

Economic Profits

Economic profits refer to the excess income earned by firms after accounting for both explicit and implicit costs, serving as a measure of efficiency and profitability.

Creative Destruction

A process where new innovations lead to the demise of older technologies or businesses, driving economic growth and progress.

Internet

A global network of interconnected computer networks that enables users to share information and communicate over vast distances.