Chapter 10, Problem 8P

To determine

Concept Introduction:

Rival and Non-rival goods: If a good or service consumed by a person alone at a time and its consumption is prevented from the other persons at that point of time then this kind of good is known as a rival good,

If a good or service consumed by a person alone and its consumption is not prevented from the other persons at that point of time, then this kind of good is known as a non-rival good. Generally, private goods are treated as rival goods and public goods are treated as non-rival goods.

Excludable and Non-Excludable goods: If people are prevented from the use of the good, they have not paid for, then such goods are treated as excludable goods, whereas if people cannot be prevented from the use of the good they have not paid for, then such goods are treated as non-excludable goods.