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:

Indirect Costs

Costs that are not directly attributable to a specific product or service but are necessary for the business to operate, such as utility expenses or salaried personnel.

Management Process

A systematic approach to planning, organizing, leading, and controlling a company's activities to achieve objectives.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making small, incremental improvements over time.

Directing

The process by which managers, given their assigned level of responsibilities, run day-to-day operations.