Economics 1021A/B Chapter Notes - Chapter 17: Public Good, Private Good, Demand Curve

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Bruce Hammond

Document Summary

Chapter 17 - public goods & common resources. Excludable good possible to prevent someone from using the g/s. Nonexcludable good impossible or extremely costly to prevent someone from benefiting from a good. Rival good use by one person decreases the amount available for use by another (e. g. fish) Nonrival good use by one person does not decrease amount available for use by another (e. g. police) Private good rival and excludable (e. g. coke) Public good nonrival and nonexcludable (e. g. national defence: can be consumed simultaneously by everyone, and everyone is free to enjoy its benefits. Common resource rival and nonexcludable: a unit of a common resource can only be used once, but anyone can use what"s available. Natural monopolies nonrival and excludable (e. g. internet, cable tv: economies of scale exist over the entire range of output for which there is demand. Free rider a person who consumes a good w/out paying for it.