A private good is a good or service for which exclusion:
A) is possible and for which marginal cost of an additional user is zero.
B) is possible and for which marginal cost of an additional user is positive.
C) cannot be applied and for which marginal cost of an additional user is zero.
D) cannot be applied and for which marginal cost of an additional user is positive.

Question

Quizplus · Accepted Answer

A private good is a good or service that is rival and excludable. Excludability means that owners can prevent some people from using it, and rivalry means that people’s use of the good or service reduces its availability to others. The marginal cost of an additional user of a private good is positive, as the consumption of one person reduces the availability of that good or service to others, and hence the cost of producing the good increases as more users consume it.

A Private Good Is a Good or Service for Which