Determine if each of the products below displays any of the following characteristics:
(i) rivalry
(ii) nonrivalry
(iii) excludability
(iv) nonexcludability.
a. a freeway during peak commute hours
b. an online college course
c. infectious disease prevention
d. open source software such as Linux
e. a movie showing at Century Theatres
a. rivalry due to traffic congestion although entry onto the freeway is nonexcludable
b. nonrival but excludable because those who did not pay for the course may not take the course
c. nonrival and nonexcludable
d. nonrival and nonexcludable
e. nonrival but excludable since admission requires purchase of a ticket
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" Is the previous statement correct or incorrect? Why?
Marginal revenue product is
A) marginal physical product times marginal factor cost. B) marginal physical product times marginal revenue. C) average physical product times marginal revenue. D) marginal physical product times the wage rate.