Classifying a good as rival means
A) that the good is produced in a competitive market.
B) that there is a shortage of the good.
C) that when one person consumes a unit of the good no one else can consume it.
D) that anyone who does not pay for the good cannot consume it.

Question

Quizplus · Accepted Answer

A good is classified as rival if when one person consumes it, there is less of it available for someone else to consume. In other words, consumption by one person rivals others' ability to consume the same unit of the good. This is the opposite of a non-rival good, where consumption by one person does not affect others' ability to consume the same unit.

Classifying a Good as Rival Means