If One Person's Consumption of a Good Does Not Preclude

question 32

Multiple Choice

If one person's consumption of a good does not preclude another's consumption, the good is said to be

• A) nonrival in consumption.
• B) rival in consumption.
• C) nonexcludable.
• D) excludable.

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Definitions:

Economic Profit

The gap between the total income and the sum of all expenses, covering both direct and indirect costs.

Perfectly Elastic

A situation in economics where the quantity demanded or supplied changes by an infinite amount in response to any change in price; highly responsive.

Profit-Maximizing

A company's strategy aimed at adjusting their level of output to generate the highest possible profit.

Demand Schedule

A table that lists the quantity of a good that consumers are willing and able to purchase at different prices over a specified period of time.