For nonrival goods like pay-per-view television programs,the private market will lead to _____ from a social perspective.
A)production of too much of the good
B)consumption of too much of the good
C)consumption of too little of the good
D)outsourcing its production

Question

Quizplus · Accepted Answer

Nonrival goods, such as pay-per-view television programs, can be consumed by multiple people without reducing the availability for others. In a private market, the price set for access can lead to underconsumption from a social perspective, as the marginal cost of allowing one more viewer is often very low or zero, but the price can prohibit some potential viewers from consuming the good.

For Nonrival Goods Like Pay-Per-View Television Programs,the Private Market Will