The private market will lead to _ of clean air because _. too little con

ID: 1118641 • Letter: T

Question

The private market will lead to _____ of clean air because _____.

too little consumption; it is nonexcludable but rival in consumption

production of the socially optimal amount; the marginal cost is zero

too much consumption; it is nonexcludable but rival in consumption

government provision; it is a public good

too little consumption; it is nonexcludable but rival in consumption

production of the socially optimal amount; the marginal cost is zero

too much consumption; it is nonexcludable but rival in consumption

government provision; it is a public good

c> too much consumption; it is nonexcludable but rival in consumption

Reason

If a good is non-excludable, in private market, consumption rises as there is no harm in consuming more but this decreases the overall utility of it.

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