Which of the Following Best Explains Why It Is Sometimes

question 23

Multiple Choice

Which of the following best explains why it is sometimes efficient to charge a positive price for the use of some products such as museums,beaches,and roads?

• A)Since these products are non-excludable,it is sometimes efficient to charge a positive price.
• B)Once these products become congested they become rivalrous,marginal cost is positive,and a positive price is then efficient.
• C)Each person consuming the product has a positive marginal benefit and should therefore pay a positive price.
• D)Since these products are excludable,marginal cost is always positive,and a positive price is appropriate.
• E)Since these products are excludable and non-rivalrous,it is always efficient to charge a positive price.

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Definitions:

Business Law

The body of law that governs business and commercial transactions, including contracts, property, and liability.

Undisclosed Principal

A principal whose identity is not revealed by the agent to the third party during a transaction, creating legal implications concerning the agent's liability.

Disclosed Principal

A principal whose identity is made known by the agent to a third party at the time of entering into a contract, which directly affects the liability and obligations under the contract.

Partially Disclosed Principal

In a transaction context, this refers to a situation where the agent reveals the existence of a principal but does not disclose the principal's identity to the third party.