Q12 Why is it sometimes efficient to charge a positive price for the use of some products such as museums, beaches, and roads? a. Since these products are excludable and non-rivalrous, it is always efficient to charge a positive price. b. Since these products are excludable, marginal cost is always positive and a positive price is appropriate. c. Each person consuming the product has a positive marginal benefit and should therefore pay a positive price. d. Since these products are non-excludable, it is sometimes efficient to charge a positive price. e. Once these products become congested they become rivalrous, marginal cost is positive, and a positive price is then efficient. Clear my choice

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

Q12

Why is it sometimes efficient to charge a positive price for the use of some products such as museums, beaches, and roads?
a.
Since these products are excludable and non-rivalrous, it is always efficient to charge a positive price.
b.
Since these products are excludable, marginal cost is always positive and a positive price is appropriate.
c.
Each person consuming the product has a positive marginal benefit and should therefore pay a positive price.
d.
Since these products are non-excludable, it is sometimes efficient to charge a positive price.
e.
Once these products become congested they become rivalrous, marginal cost is positive, and a positive price is then efficient.
Clear my choice
 
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Rivalry
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education