A cable television broadcast of a movie is A. excludable and rival in consumption. B. excludable and not rival in consumption. C. not excludable and rival in consumption. D. not excludable and not rival in consumption.

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Ronnie Pennington

Business

27 January, 12:54

A cable television broadcast of a movie is A. excludable and rival in consumption. B. excludable and not rival in consumption. C. not excludable and rival in consumption. D. not excludable and not rival in consumption.

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Trevon Reeves · Answer 1

Answer: B. excludable and not rival in consumption

Explanation: there are different ways of categorizing goods depending on excludability (whether people can be prevented from consuming them) and rivalrousness (whether individuals can consume them without affecting their availability to other individuals). Using this categorization, a cable television broadcast of a movie is excludable and not rival in consumption and is classed as a club good. A club good is a product that is excludable but non-rival as individuals can be prevented from consuming them, but their consumption does not reduce their availability to other individuals. Sometimes referred to as artificially scarce resources, they are often provided by natural monopolies. Other examples include wireless internet, cinemas toll gates, etc.