Business, 21.02.2020 02:31 jesse1384

Assume that television broadcasts are nonrival and nonexcludable (some TV stations, such as those on cable TV, are excludable, but many are not) and that there are no live TV recording devices (such as VCRs or DVRs like Tivo) How can advertising solve the free rider problem? a. Advertising acts in a method similar to a fee. People who watch TV O broadcasts must watch ads (which theyd rather not do). TV stations turn this into money by selling airtime to advertisers. b. Advertising solves the free rider problem only for TV stations such as cable O television stations that must be paid for since people will be unwilling to pay money for station and then not watch that station. c. Advertising cannot solve the free rider problem since people don't have to buy the products being advertised. d. Advertising prevents too many people from watching the broadcast, which would make the broadcast signal weaker for everyone else

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Assume that television broadcasts are nonrival and nonexcludable (some TV stations, such as those on...

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