Consider a Good for Which the Number of People Who

question 259

Multiple Choice

Consider a good for which the number of people who benefit from the good is large and the exclusion of any one those people is impossible.In this case,the market for this good will likely

• A) be a natural monopoly.
• B) have a free-rider problem
• C) not exist.
• D) be limited to a small number of units of production.

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Definitions:

Anchoring Heuristic

A cognitive bias where an individual relies too heavily on an initial piece of information to make subsequent judgments.

Extrasensory Perception

A claimed ability to gain information through means other than the known human senses.

Mental Laziness

A state where an individual avoids mentally challenging tasks, preferring comfort over cognitive effort.

Theory Perseverance Effect

The phenomenon where beliefs persist even after the evidence supporting them has been discredited or debunked.