For Some Public Goods, Such as Internet Search Engines, Which

question 59

Multiple Choice

For some public goods, such as Internet search engines, which are nonrival but potentially excludable, it is more profitable for the providers to:

• A) exclude people who don't pay for its service.
• B) sell advertising and provide its services for free.
• C) sell advertising and also charge people for using the services.
• D) offer the service to anyone for free.

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Definitions:

Common Resources

Goods that are non-excludable and rivalrous, where usage by one person diminishes others' ability to use them, often leading to overuse.

Rival In Consumption

A characteristic of a good or service that means its use or consumption by one individual prevents simultaneous use or consumption by other individuals.

Fire Protection

The study and practice of mitigating the unwanted effects of potentially destructive fires.

Rivalry In Consumption

The property of a good whereby one person’s use diminishes other people’s use.