Nonrival private goods are likely to be:
A) overprovided by the market.
B) underprovided by the market.
C) nonrival and nonexclusive.
D) rival and nonexclusive.

Question

Quizplus · Accepted Answer

Nonrival private goods are likely to be underprovided by the market because they can be consumed by multiple people without reducing availability to others, leading to potential free-rider problems and insufficient market incentives to produce them.

Nonrival Private Goods Are Likely to Be