Question

Because other firms are willing to pay to advertise with them, suppliers of nonrival private goods often modify their products to take on the qualities of what type of goods in distribution? private goods public goods common resources None of the above; producers of nonrival private goods do not change their characteristics. Which statements are reasons why advertising is an effective solution to the problem of some private nonrival goods?

a. Private Goods



b. Public Goods



c. Common Resources



d. None of the above; producers of nonrival private goods don't change their characteristics

Answer 1

Producers of nonrival private goods do not modify their products based on other firms' willingness to pay to advertise with them. Advertising is not an effective solution to the problem of private nonrival goods.

Step-by-step explanation:

The correct answer is None of the above; producers of nonrival private goods do not change their characteristics. Producers of nonrival private goods do not modify their products to take on the qualities of any other type of goods in distribution. The characteristics of nonrival private goods remain the same regardless of other firms' willingness to pay to advertise with them.

Advertising is not an effective solution to the problem of private nonrival goods. The primary reason for this is that nonrival private goods are not easily excludable, meaning it is difficult to exclude others from using the good even if they do not pay for it. This makes it challenging to collect payments from users and overcome the free rider problem. Therefore, advertising is not a practical solution in this context.

Answer 2

b. Public Goods

Step-by-step explanation:

Public Goods -

It is the type of goods and services , which each and every person can use , without any kind of restriction , is known as public goods .

These type of goods are considered to be non - rivalrous , i.e. , these goods do not reduce , irrespective of their usage .

And ,

are non - excludable , i.e. , these goods are open for all and some individual or group van not hold on to it .

The example of public goods are - public parks , sewer system , law enforcement etc .