2.10 Public goods Flashcards
The role of markets
1
Q
What are private goods?
A
Other people can be excluded from consuming it. Once consumed by one person, it cannot be consumed by another
2
Q
What are public goods?
A
Goods that are collectively consumed and are non-excludable, non-rejectable, non-rival and have zero marginal cost (no extra cost for each other person)
3
Q
A