When a Good Is Nonexcludable

question 119

Multiple Choice

When a good is nonexcludable:

• A)consumers will pay the producers the market price for the good.
• B)producers will produce too much of the good.
• C)a free-rider problem will exist.
• D)production will be efficient.

---

Definitions:

Legal Requirements

Regulations or obligations imposed by law that organizations or individuals must follow.

Governmental Regulation

The laws, rules, and regulations established by government bodies to control activities within various sectors and protect public interests.

Capital Contributions

The money, property, or other assets that an owner or shareholder provides to a business either initially or to support ongoing operations.

Total Share

Refers to the total number of shares of stock that are owned by shareholders, including both public investors and private insiders or executives.