Asked by
leslie martinez
on Dec 11, 2024
Verified
What are the two distinguishing characteristics of a public good?
A) nonrivalry in consumption and nonexcludability
B) indivisibility in production and excludability of nonpaying customers
C) provision by government and funding through taxation
D) mass production and comparative advantage
Nonrivalry
A characteristic of a good or service where its consumption by one individual does not reduce its availability to others.
Public Good
A good or service offered free of charge to every member of a society by either the government or a private entity or organization, aiming not for profit.
Nonexcludability
Refers to a situation in a market where it's impossible to exclude individuals from using a good or service, often associated with public goods.
- Master the concept differentiating public goods from private goods.
- Gain an understanding of the characteristics of nonrivalry and nonexcludability within public goods.
Verified Answer
KH
Learning Objectives
- Master the concept differentiating public goods from private goods.
- Gain an understanding of the characteristics of nonrivalry and nonexcludability within public goods.