Asked by Jacob Lovins on May 02, 2024
Verified
Private goods are
A) rival in consumption, and their benefits are excludable.
B) nonrival in consumption, and their benefits are excludable.
C) nonrival in consumption, and their benefits are nonexcludable.
D) rival in consumption, and their benefits are nonexcludable.
Private Goods
Goods that are excludable and rivalrous in consumption, meaning they can only be used by one person at a time.
Rival Consumption
A situation where the consumption of a good or service by one person reduces its availability for consumption by another person.
Excludable
A characteristic of a good or service that means it can be limited to only paying customers or those who meet certain criteria.
- Absorb the key concepts of public and private goods, including their unique characteristics.
Verified Answer
JR
Jacob RosalesMay 08, 2024
Final Answer :
A
Explanation :
Private goods are characterized by being rival in consumption, meaning that one person's consumption of the good reduces the amount available for others, and their benefits are excludable, meaning that it is possible to prevent people who have not paid for the good from consuming it.
Learning Objectives
- Absorb the key concepts of public and private goods, including their unique characteristics.