When a good is nonexcludable,
A) it is impossible or very costly to exclude nonpaying customers from receiving the good.
B) individuals will have an incentive to become free riders.
C) it will be difficult for a private firm producing the good to generate revenue sufficient to cover the cost of production.
D) all of the above are true.

Question

Quizplus · Accepted Answer

When a good is nonexcludable, it is difficult to prevent nonpaying customers from using it, leading to free rider problems and challenges for private firms in covering production costs.

When a Good Is Nonexcludable