Appendix C - Market Structures Table and Questions.doc

Appendix C - Market Structures Table and Questions.doc -...

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Axia College Material Appendix C Differentiating Between Market Structures Table and Questions Fill in the matrix and describe differences in public and private goods, common resources, and natural monopolies. Use your book and the Tomlinson video tutorials as a tool to help you answer questions about market structures. Example Is there a rival in consumption? Is it excludable? Private Good Pizza Yes Yes Public Good Tsunami Siren No No Common Resource Water Yes No Natural Monopoly Education No Yes 1. What is the difference between a public good and a private good? Public goods are not rival in consumption or excludable. Some one cannot be prevented from using a public good and when in use it does not take away from someone else’s ability to use it. No one can stop a Tsunami siren from going off when there is a Tsunami. Also, when the Tsunami siren goes off it does not hinder anyone else’s use of the siren.
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Unformatted text preview: Someone can be prevented from using a private good. Also, one person’s use of that good hinders another person’s use of that good. You can stop someone from eating a piece of pizza and by eating the piece of pizza no one else can eat it. 2. What is a common resource? xeco212r1 You cannot stop someone from using a common resource, however someone’s use of a common resource hinders another person’s use. People cannot be stopped from using water, however if one person uses water that means there is less for everyone else. 3. What is a natural monopoly? A natural monopoly means that the item can be prevented from use. However, one person’s use does not hinder the item. People can be prevented from getting an education (such as not being able to pay for it). However, one person’s use of education does not hinder another person’s use. xeco212r1...
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This note was uploaded on 03/05/2011 for the course XECO 212 taught by Professor Cohen during the Spring '10 term at University of Phoenix.

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Appendix C - Market Structures Table and Questions.doc -...

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