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) Once these products become congested they become rivalrous, marginal cost is positive, and a positive price is then efficient.
B) Each person consuming the product has a positive marginal benefit and should therefore pay a positive price.
C) Since these products are non- excludable, it is sometimes efficient to charge a positive price.
D) Since these products are excludable, marginal cost is 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.
Correct Answer:
Verified
Q16: The "informal defence" of free markets includes
Q75: Government intervention in a particular industry is
Q76: The direct resource costs of government intervention
Q77: An efficient level of provision of a
Q79: The essential coordinating mechanism of a free-
Q81: The diagram below shows demand and supply
Q82: The main point about public choice theory
Q83: Profit- motivated product and process innovation is
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