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:

Profit Center

A division or segment of a company that is directly responsible for generating its own revenues and profits, often evaluated on its individual financial performance.

Investment Center

A segment or area of a business responsible for generating revenue as well as controlling its own costs and investments.

Balanced Scorecard

A performance evaluation approach that incorporates multiple performance dimensions by combining financial and nonfinancial measures.

Nonfinancial Measures

Performance indicators not based on financial data, often used to assess aspects like customer satisfaction, employee turnover, or production quality.