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Author Question: Explain why broadcasting television over the air is considered a public good. Why is cable TV not a ... (Read 62 times)

sabina

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on: Jun 30, 2018
Explain why broadcasting television over the air is considered a public good. Why is cable TV not a public good?

Question 2

By restricting the amount of a good that may be imported, quotas:
 a. increase the price, thus causing domestic producers to sell less than they would with free trade.
  b. lower the price, thus allowing domestic producers to sell more than they would with free trade.
  c. increase the price and allow domestic producers to sell more at a higher price than they would with free trade.
  d. lower the price, thus causing domestic producers to realize lower total revenue from the quota item.
  e. simply replace foreign production with domestic production.


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upturnedfurball

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Reply #1 on: Jun 30, 2018
Answer to Question 1

Broadcast television is a good that is nonrivalrous (I can watch at the same time as others) and nonexclusive (benefits cannot be restricted to those who pay) in nature. However, cable TV can exclude nonpayers, so that it is not a public good.

Answer to Question 2

c


sabina

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

laurnthompson

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Reply 3 on: Yesterday
Gracias!

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