Nonexcludability,in the case of rival goods,causes:
A) inefficiently high demand.
B) inefficiently low demand.
C) efficient, high demand.
D) efficient, low demand.

Question

Quizplus · Accepted Answer

Nonexcludability in the case of rival goods means that once the good is produced, it cannot be easily excluded or denied to anyone who wants to consume it. This leads to inefficiently high demand as there is no way to control who consumes the good, resulting in overconsumption and a shortage of the good.

Nonexcludability,in the Case of Rival Goods,causes