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 - Questions for Review: 2


*public good: not excludable, not rival. Ex. national defense * Private market cannot provide this good on its own.

Work Step by Step

*NOT EXCLUDABLE: Because no citizen can be prevented from using the protection of national defense. NOT RIVAL:Because the use of this good by one person does not diminish the benefit others can get from the good. *Private market cannot provide good on its own because nobody would pay for the good, since they cannot be excluded because they don't pay.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.