When a Good Is Nonexcludable

question 68

Multiple Choice

When a good is nonexcludable,

• A) it is impossible or very costly to exclude nonpaying customers from receiving the good.
• B) individuals will have an incentive to become free riders.
• C) it will be difficult for a private firm producing the good to generate revenue sufficient to cover the cost of production.
• D) all of the above are true.

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Definitions:

Plastic Bottles

Plastic bottles are containers made from polymers such as polyethylene terephthalate, widely used for packaging beverages and other liquids, posing environmental concerns due to their non-biodegradable nature.

Environmental Problems

Issues caused by human activities or natural processes that damage the natural environment or negatively affect people's health and quality of life.

Eutrophic Lakes

Bodies of water that are rich in nutrients like nitrogen and phosphorus, leading to excessive growth of algae and a decrease in oxygen levels.

Clear Water Species

Refers to aquatic organisms that thrive in clean, unpolluted water environments, indicating healthy aquatic ecosystems.