MCS 1000 Chapter Notes - Chapter 17: Private Good, Marginal Utility, Marginal Cost

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 1000
• Professor: Sergio Meza

Document Summary

Goods, services, and resources differ in the extent to which people can be excluded from consuming the(cid:373) a(cid:374)d the e(cid:454)te(cid:374)t to (cid:449)hi(cid:272)h o(cid:374)e pe(cid:396)so(cid:374)(cid:859)s (cid:272)o(cid:374)su(cid:373)ptio(cid:374) (cid:396)i(cid:448)als the (cid:272)o(cid:374)su(cid:373)ptio(cid:374) of othe(cid:396)s. A good is excludable if it is possible to prevent someone from enjoying its benefits (concerts) A good is non-excludable if it is impossible (or extremely costly) to prevent anyone from benefiting from it (concert on t. v) A good is rival if one person(cid:859)s use of it decreases the quantity available for someone else (the last slice of pizza) A good is non-rival if o(cid:374)e pe(cid:396)so(cid:374)(cid:859)s use of it does (cid:374)ot de(cid:272)(cid:396)ease the (cid:395)ua(cid:374)tit(cid:455) a(cid:448)aila(cid:271)le fo(cid:396) someone else (services from police) Private goods is both rival and excludable (a can of coke and a fish o(cid:374) cooke a(cid:395)ua(cid:272)ultu(cid:396)e(cid:859)s fa(cid:396)(cid:373)) Public goods is both non-rival and non-excludable. Can be consumed simultaneously by everyone, and no one can be excluded from enjoying its benefits (weather forecasting)