Private goods can be provided by competitive markets because they are:
A) excludable, providing an incentive to pay for and thus to produce these goods.
B) excludable, since the market for buying and selling these goods is distinguishable.
C) nonexcludable, providing an incentive to pay for and thus to produce these goods.
D) nonexcludable, since the market for buying and selling these goods cannot be distinguished.

Question

Quizplus · Accepted Answer

Private goods are excludable, meaning that it is possible to prevent those who have not paid for them from consuming them. As a result, competitive markets can provide private goods because the excludable nature provides an incentive for individuals to pay for and thus produce these goods.

Private Goods Can Be Provided by Competitive Markets Because They