The differences among private goods, natural monopolies, open-access goods, and public goods with examples. Concept Introduction : Goods are categorized in many different ways. There are four types of goods which are distinguished based on rivalrousness and excludability. They are private goods, natural monopolies, open-access goods, and public goods. Rivalrousness refers to the situation where individuals can consume goods without affecting the availability of goods to other individuals. Excludability refers to the situation where people can be prevented from consuming the goods.

Question

1. What kind of good is it? Determine whether each of the following goods is a private good, a public good, a common resource, or a club good. Private Good Public Good Club Good Common Resource A new drone that you take turns flying with your friends A large, beautiful fountain in a town square A dock on a lake that is open to the public

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Chapter 16, Problem 2P

To determine

The differences among private goods, natural monopolies, open-access goods, and public goods with examples.

Concept Introduction:

Goods are categorized in many different ways. There are four types of goods which are distinguished based on rivalrousness and excludability. They are private goods, natural monopolies, open-access goods, and public goods.

Rivalrousness refers to the situation where individuals can consume goods without affecting the availability of goods to other individuals.

Excludability refers to the situation where people can be prevented from consuming the goods.

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