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The seaport town of New Monopoly has become extremely popular with shipping companies
due to its superior location. The port has become so congested that ships must wait hours every
day just to dock. This is an example of The major of New Monopoly realizes that the congestion
at the port costs the shipping companies and its town money. Which decision would NOT move
him towards a command economy?
Solution
ans 1
b) private good
as por is congested so it is rival and exclusive in use that's why port is private good
ans 2
b) The mayor decides to let individual firms and consumers find a solution for the excessive wait
time.
this decision would not move him towards a command economy because this means giving
individual firms and consumers power to decide about solution themselves which means mayor
is not using his dominating power of command economy

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  • 1. The seaport town of New Monopoly has become extremely popular with shipping companies due to its superior location. The port has become so congested that ships must wait hours every day just to dock. This is an example of The major of New Monopoly realizes that the congestion at the port costs the shipping companies and its town money. Which decision would NOT move him towards a command economy? Solution ans 1 b) private good as por is congested so it is rival and exclusive in use that's why port is private good ans 2 b) The mayor decides to let individual firms and consumers find a solution for the excessive wait time. this decision would not move him towards a command economy because this means giving individual firms and consumers power to decide about solution themselves which means mayor is not using his dominating power of command economy