If the market produces an efficient level of a good,then we know that the good must be _____ and _____ in consumption.
A)nonexcludable;nonrival
B)nonexcludable;rival
C)excludable;nonrival
D)excludable;rival

Question

Quizplus · Accepted Answer

An efficient level of a good in the market typically implies that the good is excludable and rival in consumption. Excludable means that people can be prevented from using the good unless they pay for it, and rival means that one person's use of the good diminishes the ability of another person to use it. These characteristics help ensure that the market can effectively allocate resources and charge prices that reflect the cost of production and the value to consumers.

If the Market Produces an Efficient Level of a Good,then