The Nonrival Property of Pure Public Goods Implies That The

question 28

Multiple Choice

The nonrival property of pure public goods implies that the:

• A)benefits enjoyed by existing consumers decline as more consumers enjoy a given quantity of the good.
• B)benefits enjoyed by existing consumers are unaffected as more consumers enjoy a given quan?tity of the good.
• C)good cannot be priced.
• D)marginal cost of producing the good is zero.

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Definitions:

Noncash Assets

Assets that cannot be easily converted into cash, such as real estate, equipment, and intellectual property.

Liquidated

The process of converting assets into cash or paying off liabilities in the process of closing or restructuring a business.

Capital Balances

The amount of money in a company's accounts that represents the capital contributed by the owners or shareholders.

Capital Interest

The stake that a particular investor holds in the equity of a firm, often represented by the share of the company's capital owned by the investor.