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

Self-interest achieve society’s economic goals because producers know which goods consumers want the most. as consumers and producers exercise their freedom to act in their own self-interest, markets will produce the desired goods at the lowest possible cost. consumers and producers both operate based on society’s economic goals. consumers know which goods can be produced at the lowest cost. there is a wide variety of desired goods and services in a market system because producers determine what to produce. consumers change their minds frequently. there is always a need to produce something new and improved. individual wants are diverse. what is produced is ultimately determined by consumers, because if the goods offered are not what consumers want, consumers will not buy them. producers, because they are driven by profits. producers, because they determine what to produce. consumers, because they participate in marketing surveys.