Asked by Nitika Upadhyaya on May 04, 2024

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Private goods and club goods have in common that they are excludable, but are different in that private goods are rival while club goods are not rival in consumption.

Excludable

A characteristic of a good or service that allows owners or producers to prevent its use or consumption by others.

Rival

in the context of goods, refers to a type of good for which one person's use diminishes others' ability to use it.

Club Goods

Goods that are excludable but not rival in consumption

  • Master the concepts of excludability and rivalry characteristics among goods.
  • Identify the differences between public goods, private goods, club goods, and common resources.
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ZK
Zybrea KnightMay 05, 2024
Final Answer :
True
Explanation :
Private goods are both excludable and rival in consumption, meaning that one person's use of the good diminishes another's ability to use it. Club goods are excludable but non-rival in consumption, meaning that one person's use does not significantly reduce others' ability to use the good, up to a certain point or capacity.