ECON 1 Lecture Notes - Lecture 27: Cupcake, World War I
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Characteristics of private goods excludablet owner can prevent others from enjoying the scarcity exclusion you can"t i one unit cupcake goods rivalinconsumption i use the good one consume can. Not all goods are excludable and rival view pay per broadcast tv is. Tv is excludable but excludable neither not nor rival rival. Public goods notable you can 4 charge a price for shouldnt charge a price for no marginal cost for production rival consumption not consumption examples national defense police fire basic research protection. Case the wonderful world of science three hire residents scientists for basic research marginalcosttorscientistil9i hired no matter how many same marginal benefits. How to do it voluntary the tree contributions rider program to. Decide now many by majority rule to hire. 15000 to each is 430 ooo per scientist to. Mv high voting outcomes majority prefers democracy produces the. 2 scientists to oil or 3 efficient outcome of benefits.
