If one person's consumption of a good diminishes other people's use of the good, the good is said to be ?
Correct answer: A. rival
- A. rival
- B. a good produced by a natural monopoly
- C. a common resource
- D. excludable
Explanation
A good is rival when one person's consumption leaves less available for others. Rivalry describes the effect on availability, whereas excludability concerns whether non-payers can be prevented from using it.
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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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