Nonexcludability cannot exist at the same time as market efficiency in quantity.

Name: Nonexcludability cannot exist at the same time as market efficiency in quantity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Nonexcludability means that it is difficult or impossible to prevent someone from using a certain good or service. This implies that a free-rider problem will occur and market efficiency in quantity cannot be achieved. Therefore, nonexcludability and market efficiency in quantity cannot exist simultaneously.

Nonexcludability Cannot Exist at the Same Time as Market Efficiency