Question

A pizza is Select one: a. excludable and rival in consumption. b. excludable and nonrival in consumption. c. nonexcludable and rival in consumption. d. nonexcludable and nonrival in consumption.

Answer 1

The correct answer is A. Excludable and rival in consumption

Explanation:

In economics, one service or product is classified as excludable if it requires individuals to pay for it. This means the product or service can not be accessed by all people but only by those who pay. This applies to food, and therefore to pizza because you need to pay for it.

On the other hand, a product or service is rival in consumption if it can be enjoyed by only one consumer; this means, they can be used only once or they cannot be used by multiple consumers at the same time. This rivalry applies to pizza because once a person has eaten the pizza this product is no longer available. Thus, a pizza is "excludable and rival in consumption".