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)Since these products are non-excludable,it is sometimes efficient to charge a positive price.
B)Once these products become congested they become rivalrous,marginal cost is positive,and a positive price is then efficient.
C)Each person consuming the product has a positive marginal benefit and should therefore pay a positive price.
D)Since these products are excludable,marginal cost is always positive,and a positive price is appropriate.
E)Since these products are excludable and non-rivalrous,it is always efficient to charge a positive price.

Question

Quizplus · Accepted Answer

Once these products become congested, they become rivalrous, meaning that the marginal cost of allowing an additional user becomes positive. In this case, it is efficient to charge a positive price as it can mitigate congestion and ensure that only those who value the product the most use it.

Which of the Following Best Explains Why It Is Sometimes