If a good is nonrival in consumption and a positive price is charged by the supplier, then:
A)more people want to use this good at the supplier's price.
B)there is inefficiently low consumption of this good.
C)free-riding occurs in this market.
D)there is a socially optimal level of consumption.

Question

Quizplus · Accepted Answer

When a good is nonrival, charging a positive price can lead to inefficiently low consumption because the marginal cost of an additional consumer is zero, so the price should ideally be zero to achieve optimal consumption.

If a Good Is Nonrival in Consumption and a Positive