For each of the following goods, explain why a free-rider problem arises or how it is avoided. Sharing downloaded music A. is a private good B. does not have a free-rider problem C. has a free-rider problem that can be eliminated by charging people to download music O D. has a free-rider problem that cannot be eliminated because once music is downloaded, it is nonexcludable A Canada Day fireworks display A. does not have a free-rider problem B. has a free-rider problem that cannot be eliminated C. has a free-rider problem that can be eliminated by using taxes paid by area residents to finance the display D. is a private good 00

For each of the following goods, explain why a free-rider problem arises or how it is avoided. Sharing downloaded music A. is a private good B. does not have a free-rider problem C. has a free-rider problem that can be eliminated by charging people to download music O D. has a free-rider problem that cannot be eliminated because once music is downloaded, it is nonexcludable A Canada Day fireworks display A. does not have a free-rider problem B. has a free-rider problem that cannot be eliminated C. has a free-rider problem that can be eliminated by using taxes paid by area residents to finance the display D. is a private good 00

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 1CQQ

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Similar questions

Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the model to show the impact of the negative externality from second-hand smoking. (Hint: In this case it is the consumers, not the sellers, who are creating the negative externality.) Label the social optimal output and price as Fe and Qe. On the graph, shade in the deadweight loss at the market output.
Give an example of a positive externality and an example of a negative externality.
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