Question

Describe characteristics of public goods and private goods.(10 marks) (150 words)​

Answer 1

Answer:

Characteristics of Public Goods and Private Goods are:-

Public Goods:-

• It is Nonexculudable and Nonrivalrous.
• Nonexculudable means that it is costly or impossible for one user to exclude others from using goods.
• Nonrivalrous means that when one person uses the good, it does not prevent others from using it.

Private Goods:-

• These goods are characterized by three things:- Excludability, Rivalry, Rejectability.
• Excludability- Consumers can be excluded from the consumption of the goods if they do not pay the seller for the good.
• Rivalry- When a good is used or purchased by an individual that leaves less of the good available for others.
• Rejectability- If a consumer does not like the good, they can reject it.

Hope it helps you!