Free Riding Can Occur If a Good Is

question 31

Multiple Choice

Free riding can occur if a good is

• A)excludable and rival.
• B)excludable and nonrival.
• C)a private good.
• D)nonexcludable and rival.
• E)nonexcludable and nonrival.

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Definitions:

Manufacturing Cycle Efficiency

A measurement of the effectiveness of the manufacturing process, calculated by dividing the value-added time by the total cycle time.

Throughput Time

The amount of time required for a product to pass through a manufacturing process from start to finish.

Throughput Time

The duration required to complete the manufacturing process of a single unit, including all stages of production from raw materials to finished goods.

Manufacturing Cycle Efficiency

A measure of the efficiency in manufacturing, calculated as the ratio of value-added production time to total cycle time.