Which of the Following Statements Is Not Correct

question 25

Multiple Choice

Which of the following statements is not correct?

• A)Medical research can be an example of a public good.
• B)The private market will tend to undersupply public goods.
• C)The free-rider problem occurs when a good is nonexcludable.
• D)All goods provided by the government are public goods.

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Definitions:

Minimum AVC

The lowest point on the average variable cost curve, indicating the most efficient scale of production with respect to variable costs.

Total Fixed Costs

The sum of all costs required to produce any level of output that remains unchanged, regardless of the level of production or sales.

Valid Generalization

A conclusion drawn from specific instances that is logically sound and supported by evidence.

Purely Competitive Seller

A market participant in an industry where many sellers offer identical products, and no single seller can influence the market price.