Technological Change in Excludability

Steps:

• Define public goods as non-excludable and non-rivalrous, private goods as excludable and rivalrous.
• Identify excludability as the key barrier preventing public goods from becoming private.
• Evaluate options for what alters excludability.
• Select the option that directly enables exclusion through technology.

Why B is correct:

• Public goods become private when technology makes exclusion possible, per the economic definition of excludability (e.g., encryption for digital content turns free information into a payable service).

Why the others are wrong:

• A: Consumer dissatisfaction affects provision but not the good's inherent non-excludability.
• C: Government privatization changes ownership, not the good's excludable nature.
• D: Price increases impact profitability but do not alter excludability or rivalry.

Final answer: B