MarketotheFailure

MarketotheFailure - Market Failure Chapter 14 Other...

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Market Failure Chapter 14 Other Failures
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Public Goods* A public good is nonexclusive and nonrival. Nonexclusive – no one can be excluded from its benefits. Nonrival – consumption by one does not preclude consumption by others.
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Public Goods There are no pure examples of a public good. The closest example is national defense. Technology can change the public nature of goods. Roads are an example.
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Public Goods Once a pure public good is supplied to one individual, it is simultaneously supplied to all. A private good is only supplied to the individual who bought it.
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Public Goods With public goods, the focus is on groups. With private goods, the focus is on the individual.
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Public Goods In the case of a public good, the social benefit of a public good is the sum of the individual benefits.
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Adding demand curves vertically is easy to do in textbooks, but not in practice. This is because individuals do not buy
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This note was uploaded on 01/13/2012 for the course ECON 102 taught by Professor Mikejavanmard during the Fall '10 term at Harvard.

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MarketotheFailure - Market Failure Chapter 14 Other...

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