Which of the Following Best Explains Why It Is Sometimes

question 82

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

Money Claims

Money claims involve legal actions taken to recover debts or money owed from a person, company, or entity.

Entities

Organizations or businesses that exist as distinct legal, financial, and operational units for accounting purposes.

Receivables

Money owed to a company by its customers or other parties for goods or services that have been delivered but not yet paid for.

Older Accounts

Refers to accounts receivable that have been outstanding for a longer period, often categorized by how long they have been unpaid (e.g., 30 days, 60 days).