A radio programme with zero marginal cost per extra listener is:[Fill in the blank]

Question

BlackTom AI · Accepted Answer

Non-rival consumption: when one person’s use does not reduce another’s, so zero marginal cost per extra listener implies non-rivalry. Excludability is a separate attribute that depends on whether access can be limited.

1. Relevant concepts
- Marginal cost = additional cost of serving one more user. If this is zero, adding listeners doesn’t use up the good’s availability.
- Rivalry: a good is rival if one person’s consumption reduces what’s left for others. Non-rival means simultaneous consumption by many is possible without loss.
- Excludability: a good is excludable if the provider can prevent non-payers from using it; otherwise it is non-excludable.
- Classification: public good = non-rival & non-excludable; club good = non-rival & excludable; common resource = rival & non-excludable; private good = rival & excludable.

2. Step-by-step reasoning
- Zero marginal cost per extra listener → broadcasting to one more person does not diminish others’ ability to listen. Therefore the radio programme is non-rival.
- Whether it is excludable depends on technology or business model. If the broadcaster uses encryption, subscription paywalls, or closed channels that block non-payers, then it is excludable. If it’s free-to-air and cannot be feasibly restricted, it is non-excludable.

3. Intermediate logical steps (no numeric calculation needed)
- Marginal cost = 0 → unlimited listeners feasible → non-rival.
- Excludability determined by subscription/encryption → with subscription = excludable; without = non-excludable.

4. Why the correct answer is correct
Option b states “non-rival, and if subscription prevents non-payers from listening it is excludable.” This precisely captures the zero-marginal-cost implication (non-rival) and acknowledges that excludability depends on the platform/policy.

5. Why other options are incorrect
- a (rival and non-excludable): contradicts zero marginal cost and the definition of rivalry.
- c (rival and excludable): again wrongly classifies radio as rival.
- d (always a private good): incorrect because radio can be non-excludable (public good) or excludable (club good), so it is not always a private good.

Conclusion: The correct choice is b, matching the provided answer.

A radio programme with zero marginal cost per extra listener is:[Fill in the blank]Single choice

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