The Marginal Cost of Providing Another Viewer with Access to HBO

question 105

Multiple Choice

The marginal cost of providing another viewer with access to HBO is zero. Since only people who pay for HBO can watch it:

• A)fewer than the socially optimal number of people will have access to HBO.
• B)more than the socially optimal number of people will have access HBO.
• C)HBO will not be profitable in the long run.
• D)access to HBO is nonexcludable.

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Definitions:

David Hume

An 18th century Scottish philosopher, famous for his skepticism and empiricism.

Systematic Understanding

Comprehensive comprehension structured through organized and logical reasoning, often used in scientific and philosophical contexts.

Knowledge

Expertise or know-how developed through learning or direct involvement; a grasp of a subject matter, whether through academic means or real-world practice.

Rationalism

A philosophical stance prioritizing reason and logic as the primary source of knowledge over sensory experience.