Nonrival private goods are likely to have ________ fixed costs and ________ marginal costs.
A) small; large
B) small; small
C) large; small
D) large; large

Question

Quizplus · Accepted Answer

Nonrival private goods typically have large fixed costs due to the initial investment required to produce them, but small marginal costs because producing additional units is relatively inexpensive.

Nonrival Private Goods Are Likely to Have ________ Fixed Costs