Which of the following is correct?
A)Private goods are subject to rivalry and excludability
B)Private goods are indivisible.
C)Private goods are subject to the free-rider problem.
D)Private goods are produced in efficient or optimal amounts despite substantial externalities.

Question

Quizplus · Accepted Answer

Private goods are subject to rivalry because their consumption by one person decreases their availability for others to consume. They are also subject to excludability, which means that those who do not pay for the good are prevented from consuming it.

Which of the Following Is Correct