Most neighbourhood streets are illuminated at night by streetlights.The streetlights are _____ and _____.Therefore,they are likely to be _____ by the competitive market.
A) nonrival;nonexcludable;underprovided
B) nonrival;nonexcludable;overprovided
C) rival;excludable;efficiently provided
D) nonrival;excludable;underprovided

Question

Quizplus · Accepted Answer

Streetlights are nonrival because one person's use of the light does not prevent another person from using it. They are also nonexcludable because it is difficult to prevent people from using the light. Therefore, they are likely to be underprovided by the competitive market because private firms will not be able to charge for their use.

Most Neighbourhood Streets Are Illuminated at Night by Streetlights