Which of the following statements is/are true about private goods?
I. Rivalrous in consumption
II. Non-excludability
III. Negative marginal cost
- AOnly III
- BOnly I
- CBoth II and III
- DOnly II
Solution & Step-by-step Explanation
Private goods exhibit two main properties:
1. Rivalrous in consumption: One person's consumption reduces the amount available for others.
2. Excludability: Consumers can be prevented from accessing it if they do not pay.
Hence, only Statement I is correct.
1. Rivalrous in consumption: One person's consumption reduces the amount available for others.
2. Excludability: Consumers can be prevented from accessing it if they do not pay.
Hence, only Statement I is correct.