When a Good Is Both Rivalrous and Nonexcludable

question 92

Multiple Choice

When a good is both rivalrous and nonexcludable:

• A)the free rider problem may arise.
• B)the tragedy of the commons may arise.
• C)the good is likely a private good.
• D)the good is likely an artificially scarce good.

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Definitions:

EPS

Earnings Per Share (EPS) is a financial ratio that measures the amount of net income earned per share of stock outstanding.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall market capitalization remains the same.

Market Price

The prevailing cost at which you can buy or sell a service or asset in the market.

Shares Outstanding

Shares Outstanding refer to all shares currently owned by shareholders, company insiders, and investors in the public domain, representing the total equity ownership of a company.