Knowledge capital is ________ in production and ________.As a result,firms ________ free ride.
A)nonrival;nonexcludable;can
B)nonrival;excludable;can
C)rival;nonexcludable;cannot
D)nonrival;nonexcludable;cannot

Question

Quizplus · Accepted Answer

Knowledge capital is nonrival in production, meaning that its use by one firm does not reduce its availability to other firms, and nonexcludable, meaning that it is difficult to prevent others from benefiting from its use. As a result, firms can free ride, or benefit from the knowledge capital without paying for its creation or maintenance. Choice A correctly identifies both properties of knowledge capital and the resulting ability of firms to free ride.

Knowledge Capital Is ________ in Production and ________

Knowledge Capital Is in Production and