When a Good Is Nonexcludable

question 108

Multiple Choice

When a good is nonexcludable:

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

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Definitions:

Legal Presumption

A rule that requires a court or tribunal to assume a fact is true until it is disproven by evidence to the contrary.

Commercial Arrangements

Agreements or transactions between businesses or entities that are commercial in nature, often involving the exchange of goods or services.

Mental Incapacity

A state where an individual is unable to understand the nature and consequences of their actions, affecting their ability to enter legal agreements or make decisions.

Essential Terms

Fundamental conditions or clauses in a contract that are necessary to the performance of that contract.