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

The accompanying graph shows the short-run demand and cost situation for a price searcher in a market with low barriers to entry. Price (dollars) 24 8 MC ATC MR 30 D 45 50 Quantity/time The firm will maximize its profit at a quantity of units. After choosing the profit maximizing quantity, the firm will charge a price of The firm will receive $ in revenue at the profit-maximizing quantity. The total cost of production for this profit-maximizing quantity is S The maximum profit the firm can earn in this situation is $ per unit for this output. How will the situation change over time? Profits will attract rival firms into the market until the profit-maximizing price falls to the level of per-unit cost. ◇ Losses will induce firms to leave this market until the profit maximizing price falls to zero. The market will adjust until the price charged by this firm no longer exceeds marginal cost at the profit-maximizing quantity. This market is already in long-run equilibrium, and will not…

Answer 1

Question

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.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

The accompanying graph shows the short-run demand and cost situation for a price searcher in a market with low barriers to entry. Price (dollars) 24 8 MC ATC MR 30 D 45 50 Quantity/time The firm will maximize its profit at a quantity of units. After choosing the profit maximizing quantity, the firm will charge a price of The firm will receive $ in revenue at the profit-maximizing quantity. The total cost of production for this profit-maximizing quantity is S The maximum profit the firm can earn in this situation is $ per unit for this output. How will the situation change over time? Profits will attract rival firms into the market until the profit-maximizing price falls to the level of per-unit cost. ◇ Losses will induce firms to leave this market until the profit maximizing price falls to zero. The market will adjust until the price charged by this firm no longer exceeds marginal cost at the profit-maximizing quantity. This market is already in long-run equilibrium, and will not…

Explain how are kids well being with the poverty simulation.

Explain in a page essay how people deal with poverty simulation.