If a good is excludable and nonrival,

Question

Quizplus · Accepted Answer

If a good is excludable and nonrival, then it can be easily provided by the private market. Excludable means that it is possible to prevent someone from accessing the good if they do not pay for it, while nonrival means that the consumption of the good by one individual does not diminish the consumption possibilities of others. This suggests that the private market has incentives to provide the good since they can charge individuals for access to the good without the fear of it being diminished. Hence, a private market will provide the good.

If a Good Is Excludable and Nonrival