Which of the Following Is True About Public Goods

question 122

Multiple Choice

Which of the following is true about public goods?

• A) Unregulated private markets produce less than the efficient quantity of a public good
• B) Efficient provision occurs at the level of output at which total benefit is equal to total cost
• C) Consumption is rival and nonexcludable
• D) Consumption is nonrival and excludable

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Definitions:

Monopoly

is a market structure characterized by a single seller dominating the entire market by selling a unique product or service.

Predatory Pricing

A competitive strategy involving setting prices at very low levels with the intent to eliminate competition, potentially leading to monopoly pricing power once competitors are driven out.

Cooperative Behavior

Actions by individuals or groups that are intended to benefit others or work towards a common goal.

Sherman Act

A foundational antitrust law in the United States that prohibits monopolistic practices and promotes competition.