Though markets can provide goods that are excludable but nonrival, they do so at the price of:
A) efficiency.
B) inefficiency.
C) equity.
D) inequity.

Question

Quizplus · Accepted Answer

Markets may provide excludable but nonrival goods, but they may do so inefficiently. When markets fail to allocate resources efficiently, there can be a deadweight loss or a reduction in surplus that could have been generated. This inefficiency arises because markets may not take into account externalities or because of market power exercised by firms that prevent competition.

Though Markets Can Provide Goods That Are Excludable but Nonrival