Which of the following goods is least likely to be provided by the private sector?
A)a good characterized by nonrivalry in consumption from which nonpaying customers can be excluded
B)a good characterized by nonrivalry in consumption from which paying customers cannot be excluded
C)a good characterized by rivalry in consumption from which nonpaying customers can be excluded
D)a good for which the marginal private benefit to an individual exceeds the marginal cost of producing the good

Question

Which of the following goods is least likely to be provided by the private sector?
A)​a good characterized by nonrivalry in consumption from which nonpaying customers can be excluded
B)​a good characterized by nonrivalry in consumption from which paying customers cannot be excluded
C)​a good characterized by rivalry in consumption from which nonpaying customers can be excluded
D)​a good for which the marginal private benefit to an individual exceeds the marginal cost of producing the good

Quizplus · Accepted Answer

A good characterized by nonrivalry in consumption from which paying customers cannot be excluded, such as clean air or national defense, is less likely to be provided by the private sector because it is difficult to exclude nonpaying customers and there is no clear way to charge for the private use of the good.

Which of the Following Goods Is Least Likely to Be