government_and_market_failure

government_and_market_failure - Government and Market...

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Government and Market  Failure
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Private Goods Private Goods-include basically all the products  we have discussed in class to this point. Examples include: cars, clothing, personal computers 2 characteristics Rivalry (nonshared consumption)-when one person  consumes a product, it is no longer available for  anyone else. Excludability-sellers can prevent those who do not  pay for a product from obtaining its benefits.
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Private Goods (cont’d) Consumers express their approval of private  goods by creating a demand for products. These goods are delivered in the competitive  market where firms sell to firms willing to pay the  market price for goods. Those who don’t pay, go  without. Competitive markets allocates society’s  resources efficiently to the particular product. No  underproduction, no overproduction.
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Public Goods Opposite characteristics of private goods
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government_and_market_failure - Government and Market...

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