Question

A cheeseburger is a a excludable and nonrival in consumption. b nonexcludable and rival in consumption. c excludable and rival in consumption. d nonexcludable and nonrival in consumption.

Answer 1

C. EXCLUDABLE and RIVAL in consumption

Step-by-step explanation:

A good is EXCLUDABLE if it is feasible to exclude people from consuming it , can be restricted to entirely private consumption based on price mechanisms .

A good is RIVAL if its consumption by one consumer doesnt reduce its availability to be consumed by other consumers .

CHEESEBURGER - Feasibly excludable among potential consumers as per price purchase,

It's consumption by a consumer reduces its availability for other consumers

Is a PRIVATE GOOD , which is both Excludable & Rival

This can be better explained with example of -

Public Goods (Non Rival , Non Excludable) .

Eg : Air Pollution - People cant be excluded from that , breathing of polluted air by one person doesn't reduce the pollutedness of air for other breathing people

Answer 2

The correct answer is option c.

Step-by-step explanation:

A good is said to be excludable if it is possible and feasible to prevent who have not paid from consuming it. If individuals cannot be prevented from consuming the good then it is non-excludable.

On the other hand, a good is said to be rival in nature if its consumption by an individual reduces its availability to other consumers.

A cheeseburger is excludable as only those who pay for it can purchase it. At the same time, its consumption is rival in nature as after consuming by an individual it will be no longer available to others.