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Private markets provide efficient quan11es of private

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Unformatted text preview: upply) at the market equilibrium price and quan1ty Examples of Private Goods Hamburgers Ice cream cones Refrigerators Automobiles Soup Hammers Airline 1ckets Televisions Most of the goods we typically consume are private goods 2 Public Goods A public good is a good with the following two characteris1cs: Non-rival: if one person consumes the good it doesn't prevent anyone else from consuming it at the same 1me Non-excludable: once the good has been provided to one person, it is available to everyone. Thus, it is impossible or imprac1cal to exclude non- payers from consuming it. Thus, a public good must be provided in the same amount to all of the affected consumers. As we will see later, the demand curve for a public good is the ver1cal summa1on of the demand curves of the individual consumers Private markets generally do not provide efficient quan11es of public goods Private firms tend to only want to sell goods to individuals who are willing and able to pay for them Examples of Pure Public Goods Na...
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