When a good is nonrival in consumption, then:
A)consumption by an additional individual will significantly reduce the benefits derived by others.
B)individuals who refuse to pay for the good cannot be excluded from benefiting from it.
C)consumption by an additional individual does not prevent others from benefiting from the good.
D)individuals who refuse to pay for the good can be excluded from benefiting from it.
E)the consumption of the good by an individual generates negative externalities.

Question

Quizplus · Accepted Answer

Nonrival in consumption means that the consumption by one individual does not reduce the availability or usefulness of the good to others. Therefore, the consumption by an additional individual does not prevent others from benefiting from the good. Options A and E describe cases where consumption by one individual negatively affects others, which is not true for nonrival goods. Option B refers to nonexcludable goods, where it is difficult or impossible to prevent individuals who do not pay from benefiting from the good. Option D refers to excludable goods, where it is possible to prevent non-paying individuals from benefiting from the good. Therefore, the correct answer is C.

When a Good Is Nonrival in Consumption, Then