Nonexcludability Cannot Exist at the Same Time as Market Efficiency

question 147

True/False

Nonexcludability cannot exist at the same time as market efficiency in quantity.

---

Definitions:

Opportunity Costs

The value of the next best alternative foregone as a result of making a decision.

Production Capacity

The maximum amount of goods or services a facility can produce over a given period under normal working conditions.

Widgets

A generic term typically used to describe any product or manufactured item in discussions or examples about economic theory, manufacturing, or sales.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.