Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 11 - Part IV - Public Goods and Common Resources - Problems and Applications: 1

Answer

*police protection: natural monopoly. excludable , not rival *snow plowing: common resource , excludable, rival *education: private good, excludable, rival *rural roads: public goods, neither excludable nor rival *city streets: common resource (congested) , public goods (un congested).

Work Step by Step

*police force: excludable (may not patrol some neighborhoods). not rival (they have to be wherever the crimes are). *snow plowing: once area of snowboarding is plowed not excludable. rival plowing one street means not plowing in another. *education: excludable (you have to pay). rival (spaces left in class). *rural roads: they are uncontested that is why they are neither *city streets aren't excludable because anyone has access to them. They are rival because every driver slows down traffic.
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