•Explain the differentiating characteristics of public and
private goods
List any five private...

Question

•Explain the differentiating characteristics of public and
private goods
List any five private goods(bread, cinemas, satellite
television, golf courses, patents) and any five public goods (fresh air, clean
water, knowledge, lighthouses, radio broadcasts) .
Then, do the following:

1.
Analyze the characteristics of each of these
goods. Focus on the characteristics that define each good as "public"
or "private."
2.
Based on the characteristics of each good, argue
whether the price elasticity of each of these goods would be relatively more
elastic or less elastic. Give the basis of your reasoning..
Submit assignment in a Word document, 2—3 pages (500—750
words) in length.

David · Accepted Answer

•Explain the differentiating characteristics of public and private goods List any five private goods(bread, cinemas, satellite television, golf courses, patents) and any five public goods (fresh air, clean water, knowledge, lighthouses, radio broadcasts) . Then, do the following: 1. Analyze the characteristics of each of these goods. Focus on the characteristics that define each good as "public" or "private." 2. Based on the characteristics of each good, argue whether the price elasticity of each of these goods would be relatively more elastic or less elastic. Give the basis of your reasoning.. Submit assignment in a Word document, 3 pages (500—750 words) in length.
There are two main features that are different across public and private goods:
· Non-rivalry: this means that consumption of a public good is non rivalrous - if 1 person consumes it, there is no reduction in the amount available for others. More than one individual can consume the public good without any reduction in its amount. 
· Non-excludability: A single individual cannot be excluded from consuming the good. This is often the result of technology or the nature of a good. For example, national defence. The benefits of this good cant be restricted to a particular consumer. The armed forces protect all citizens equally. 
For a private good consumption can be restricted as ownership rights can be defined clearly. So only an owner can consume the good. The nature of the good is such that quantity is limited so that consumption by 1 person reduces the amount available for others’ consumption.

•Explain the differentiating characteristics of public and private goods List any five private goods(bread, cinemas, satellite television, golf courses, patents) and any five public goods (fresh air,...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment