For a Good to Be Nonrival, Then

question 8

Multiple Choice

For a good to be nonrival, then

• A) a person is willing to pay any price to ensure that the product is available.
• B) a person cannot be prevented from consuming that good even if he or she did not pay for it.
• C) a person is not willing to pay for the good because even without paying for it, the person can consume the good anyway.
• D) one person's consumption of that good does not decrease another person's consumption of that good.

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Definitions:

Marginal Private Cost

The additional cost incurred by a producer or a consumer for producing or consuming one more unit of a good, excluding any external costs.

Marginal External Cost

The additional cost society bears due to one more unit of a good or service being produced, not included in the producer's cost.

Aphrodisiacs

Substances that increase sexual desire or libido, these can be foods, drugs, or other agents.

Negative Externality

A cost that affects a party who did not choose to incur that cost or benefit, often seen in environmental pollution affecting bystanders not involved in the production or consumption causing the pollution.