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) Each person consuming the product has a positive marginal benefit and should therefore pay a positive price.
B) Since these products are non- excludable,it is sometimes efficient to charge a positive price.
C) Once these products become congested they become rivalrous,marginal cost is positive,and a positive price is then efficient.
D) Since these products are excludable and non- rivalrous,it is always efficient to charge a positive price.
E) Since these products are excludable,marginal cost is always positive,and a positive price is appropriate.
Correct Answer:
Verified
Q64: The diagram below shows the marginal benefit
Q65: The diagram below shows the marginal benefit
Q66: The diagram below shows demand and supply
Q67: A good example of a product that
Q68: An example of a public good is
A)air
Q70: The total costs of government intervention in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents