When consumption of a good by one person does not prevent consumption by another, a. there is an external cost. b. there is a network externality. c. consumption is nonrival. d. There is free ridership.

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Business

Angelo Peters

16 February, 18:07

When consumption of a good by one person does not prevent consumption by another, a. there is an external cost. b. there is a network externality. c. consumption is nonrival. d. There is free ridership.

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Answers (1)

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Kallie Hicks · Answer 1

The correct answer is letter "C": consumption is nonrival.

Explanation:

Rival goods are those whose consumption is allowed to one individual. Rival goods are durable because they are to be used one at the time or nondurable since they perish. Nonrival goods, on the other hand, are those publicly shared by individuals and their demand is not an influencing factor in their consumption. National defense, street lights or public safety are examples or nonrival goods.