The Possibility That the Entire Transaction Will Fail,resulting in a Loss

question 70

True/False

The possibility that the entire transaction will fail,resulting in a loss of the initial investment is called the $\underline { \text { chance } }$ ._________________________

---

Definitions:

Free-rides

The situation where individuals consume a public good without contributing to its cost, benefiting from others' contributions.

Common Resource

A natural or man-made resource where one user's consumption reduces or diminishes the utility of that resource for others, and where it is difficult to exclude anyone from using the resource.

Rival

Refers to a competitor within the same market that offers similar products or services.

Nonexcludable

A nonexcludable good or service is one where it is impossible, or highly costly, to prevent someone from benefiting from it, regardless of whether they have contributed towards it, such as public parks or national defense.