shared goodor servicefor which itwould beimpracticalto makeconsumerspayindividuallyand toexclude non-payerssituation inwhich thefree marketdoes notdistributeresourcesefficientlysituation inexternalityOfree riderproblempublic marketgoodrival inprivatefailure good consumptionо о о оOOOO situation inwhichsomeoneenjoys thebenefit of agood orservicewithoutpaying for itgood orservicewhose usecan bedenied tothose whodo not payfor iteconomicside effectof a goodorservice thatgeneratesunintendedbenefits orcosts tosomeoneOOOOOOO

1) Public goods are the good that have the characteristics of non rivalry (use by one person does…

shared good or service for which it would be impractical to make consumers pay individually and to exclude non- payers externality O free rider problem good O public market failure O O private rival in good consumption O O

shared good or service for which it would be impractical to make consumers pay individually and to exclude non- payers externality O free rider problem good O public market failure O O private rival in good consumption O O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Opportunity Cost Analysis

Opportunity cost refers to the loss of potential benefits when choosing one alternative over another. It is the tradeoff a person makes, or the potential gains they miss out on, because of their choice. To analyze opportunity cost, we must consider the benefits and tradeoffs of each available option.

Question

shared good
or service
for which it
would be
impractical
to make
consumers
pay
individually
and to
exclude non-
payers
situation in
which the
free market
does not
distribute
resources
efficiently
situation in
externality
O
free rider
problem
public market
good
rival in
private
failure good consumption
о о о о
O
O
O
O

situation in
which
someone
enjoys the
benefit of a
good or
service
without
paying for it
good or
service
whose use
can be
denied to
those who
do not pay
for it
economic
side effect
of a goodor
service that
generates
unintended
benefits or
costs to
someone
O
O
O
O
O
O
O

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