This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: D. Natural Monopoly 1. Excludable a. Fire protection can exclude someone from protection 2. Not Rival in Consumption a. There is no additional cost for the fire company to protect one house because the fire company is already paid E. Free Rider- a person who receives the benefits of a good but avoids paying for it F. Cost- Benefit Analysis 1. A study that compares the cost and benefits to society of providing a public good 2. Estimate the total cost of constructing a project G. Tragedy of the Commons- Parable that illustrates why common resources get used more than is desirable from the standpoint of society as a whole...
View Full Document
- Spring '11
- Public Good, ice cream, b. Public Goods, a. Private goods