Tim works for the government and is implementing a new government policy to set up spacious yoga studios at all state primary schools.The general public will be able to attend classes in the studios but Tim is still is trying to decide on a pricing structure.What pricing structure should Tim suggest the government adopt for the studios and why?
A)participants shouldn't pay for their own class because a yoga class is a private good
B)participants should pay for the classes out of their taxes because yoga classes are a public good
C)participants shouldn't pay for their own class because a yoga class is a common resource
D)participants should each pay for their own class because yoga classes are excludable and rival

Question

Quizplus · Accepted Answer

Yoga classes are excludable, meaning that only those who pay to attend can benefit from the class. Additionally, they are rival, meaning that the presence of one participant can decrease the benefits for others. Therefore, it would make sense for participants to each pay for their own class.

Tim Works for the Government and Is Implementing a New