Author Question: How do public goods differ from private goods? What will be an ideal ... (Read 153 times)

moongchi · **on:** Jun 29, 2018

How do public goods differ from private goods?

What will be an ideal response?

Question 2

Which of the following is a determinant of supply?

A) tastes and preferences of consumers
B) technology
C) consumer income
D) number of consumers

kingdude89 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A private good is characterized by the principle of rival consumption, which means that one person's consumption of a good reduces the amount available for someone else. A public good is not characterized by the principle of rival consumption. Public goods can be used by more people at no additional cost. Further, once the good is produced, it is usually impossible, or at the very least difficult, to exclude anyone from consuming it.

Answer to Question 2

B