In a market economy, goods that are nonexcludable will be produced at inefficiently low levels (if they are produced at all), while goods that are excludable but nonrival in consumption will suffer from inefficiently low consumption levels.False

Question

Quizplus · Accepted Answer

Nonexcludable goods often suffer from the "free rider" problem, leading to underproduction, while excludable but nonrival goods, like digital goods, can be underconsumed due to pricing above marginal cost.

In a Market Economy, Goods That Are Nonexcludable Will Be