Suppose that the latest Indiana Jones movie played in theaters first,where it was sold out during its opening week.Several months later it was available on pay-per-view TV.Two years later it was shown on CBS,a broadcast television network.
When the movie was playing at the theater it was a _______ good,when it was available on pay-per-view TV it was a _______ good and when it was shown on CBS it was a _______ good.

Question

Quizplus · Accepted Answer

When the movie was playing at the theater, it was a private good because access was limited to those who bought tickets. When it was available on pay-per-view TV, it was a collective good because people could pay to access it in their own homes, but it was still limited to those who were willing to pay. Finally, when it was shown on CBS, it was a public good because it was available for free to anyone with access to a TV. Therefore, the best choice is B, which correctly identifies the changing nature of the good as it moves from a private to a collective to a public good.

Suppose That the Latest Indiana Jones Movie Played in Theaters