When goods are rival in consumption and excludable, markets:
A) will not be able to produce the efficient quantity of the good.
B) will produce an efficient quantity of the good.
C) will consistently produce less than the efficient quantity of the good.
D) will find that consumers are unwilling to purchase the good.

Question

Quizplus · Accepted Answer

When goods are rival in consumption and excludable, they are private goods. Markets can efficiently allocate resources for private goods, leading to the production of an efficient quantity.

When Goods Are Rival in Consumption and Excludable, Markets