A congested toll road is ?
Correct answer: B. a private good
- A. a good produced by a natural monopoly
- B. a private good
- C. a public good
- D. a common resource
Explanation
A toll makes the road excludable, while congestion makes one driver's use reduce the road space available to others, making it rival. A good that is both excludable and rival is classified as a private good.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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