A congested toll road is an example of a natural monopoly good.

Here's why:

1. A public good is one that is non-excludable and non-rivalrous, meaning that individuals cannot be effectively excluded from its use, and use by one individual does not reduce its availability to others. This does not apply to a toll road, as it is excludable (you have to pay to use it) and can be rivalrous (it can become congested).

2. A common resource is a type of good consisting of a natural or human-made resource system, whose size or characteristics makes it costly, but not impossible, to exclude potential beneficiaries from obtaining benefits from its use. This does not apply to a toll road, as it is not a natural resource and it is not difficult to exclude people from using it (they simply have to not pay the toll).

3. A natural monopoly good is a type of good that can most efficiently be produced by a single company. This applies to a toll road, as it would be inefficient to have multiple companies building parallel toll roads.

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Question

A congested toll road is an example of a natural monopoly good.

Here's why:

1. A public good is one that is non-excludable and non-rivalrous, meaning that individuals cannot be effectively excluded from its use, and use by one individual does not reduce its availability to others. This does not apply to a toll road, as it is excludable (you have to pay to use it) and can be rivalrous (it can become congested).

2. A common resource is a type of good consisting of a natural or human-made resource system, whose size or characteristics makes it costly, but not impossible, to exclude potential beneficiaries from obtaining benefits from its use. This does not apply to a toll road, as it is not a natural resource and it is not difficult to exclude people from using it (they simply have to not pay the toll).

3. A natural monopoly good is a type of good that can most efficiently be produced by a single company. This applies to a toll road, as it would be inefficient to have multiple companies building parallel toll roads.

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Knowee AI · Accepted Answer

A congested toll road is an example of a natural monopoly good.

Here's why:

1. A public good is one that is non-excludable and non-rivalrous, meaning that individuals cannot be effectively excluded from its use, and use by one individual does not reduce its availability to others. This does not apply to a toll road, as it is excludable (you have to pay to use it) and can be rivalrous (it can become congested).

2. A common resource is a type of good consisting of a natural or human-made resource system, whose size or characteristics makes it costly, but not impossible, to exclude potential beneficiaries from obtaining benefits from its use. This does not apply to a toll road, as it is not a natural resource and it is not difficult to exclude people from using it (they simply have to not pay the toll).

3. A natural monopoly good is a type of good that can most efficiently be produced by a single company. This applies to a toll road, as it would be inefficient to have multiple companies building parallel toll roads.

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A congested toll road is an example of which type of good?Group of answer choicesA public good.A common resource.A natural monopoly good.A private good.

Question

A congested toll road is an example of which type of good?

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