Question

Consider the rivalry in consumption and excludability of each of the following goods. Use this information to determine whether the goods are public goods, private goods, common resources, or club goods. Explain.

Broadcast television signals

Answer 1

Broadcast television signals are considered public goods because they are nonexcludable and nonrivalrous, meaning they can't prevent access and one person's use doesn't stop others.

Step-by-step explanation:

Broadcast television signals, similar to radio signals, are considered public goods because they are both nonexcludable and nonrivalrous in consumption. Once a television signal is broadcast, it is nearly impossible to prevent anyone with a receiver from accessing the signal, making the service nonexcludable. Additionally, one individual's consumption of the broadcast does not inhibit another person's ability to view the same television program, which signifies the service is nonrivalrous. In public goods, these characteristics lead to a situation where it is not feasible to charge users directly, which is why commercial broadcasters typically rely on advertising for revenue.

Broadcast television signals are an example of a public good. They are nonexcludable because once the signal is broadcast, it is difficult to prevent someone from receiving it. They are also non-rivalrous because one person watching the broadcast does not prevent others from watching as well. Due to these characteristics, it is practically impossible to charge viewers directly for watching broadcast television signals.