When a good is not excludable but is rival in consumption the:
A) free rider problem may arise.
B) tragedy of the commons may arise.
C) good is likely a private good.
D) good is likely a common resource.

Question

Quizplus · Accepted Answer

When a good is rival but not excludable, it means that anyone can consume the good without being stopped, while consumption by one person reduces the amount available for others. This situation is known as the tragedy of the commons, as resources are likely to be overused and depleted due to the lack of ownership and control. The free rider problem arises when a good is non-rival but non-excludable, meaning that consumption by one person does not affect others, yet it is difficult to prevent non-payers from using the good.

When a Good Is Not Excludable but Is Rival in Consumption