why cinema is a club good instead of a private good ? Isnt cinema rivalrous ?...

why cinema is a club good instead of a private good ? Isnt cinema rivalrous ? when you take a seat in the cinema , others cannot sit on the same seat again .

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Expert Solution

Answer:Club goods are invisible scarce goods mentioned in economics.It constitutes zero marginal cost which is naturally known as organic monopoly.Moreover,artificail scarcity always created in case of club goods.Example of club goods are cinema,cable television,social clubs to their members.Various Union formed around the world is also a example of it like European Union or NAFTA that includes free trade of goods,services,person and money(they have common currency Euro) with in the internal market.

Cinemas is highly excludable but also non rival or very low rivalry in consumption.Same movies can be seen two different cinema or different OTT platforms.When i take a seat in cinema,i bought tickets for that particular show which would run approximately 2 to 3 hours.Other persons can sit on same seat when next show is running after 2 to 3 hours, if he buy a ticket for it.

Rahul Sunny answered 1 year ago

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