Sharing Downloaded Music

question 76

Multiple Choice

Sharing downloaded music

• A)has a free-rider problem that cannot be eliminated because once music is downloaded,it is nonexcludable.
• B)has a free-rider problem that can be eliminated by charging people to download music.
• C)is a private good.
• D)does not have a free-rider problem.
• E)is a common resource.

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Definitions:

Probability Distribution

A mathematical description of a random phenomenon in terms of the probabilities of its outcomes.

Electrical Outages

Interruptions in electrical power supply, often due to system failures or maintenance activities.

Counting Rule

A mathematical rule to determine the number of possible outcomes in a situation without having to list them all explicitly.

Combinations

Refers to the selection of items from a larger set where the order of selection does not matter.