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Unformatted text preview: public good is not a fee based good. Ay individual may use the public good without causing others to lose that right. A medication is a private good. By contrast private goods are rivaled and excluded. A public good would be our air. It is the same for everyone and no matter what we will never run out of it. 2. What is a common resource? The concept of a common resource resembles that of a public good. Common resources are, however rivaled. This indicates that if one person uses it that another persons access to it is decreased. Wildlife and fish are examples of common resources. xeco212r1 3. What is a natural monopoly? In economics, a natural monopoly occurs when, due to the economies of scale of a particular industry, the maximum efficiency of production and distribution is realized through a single supplier, but in some cases inefficiency may take place. xeco212r1...
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This note was uploaded on 02/12/2012 for the course ALL all taught by Professor All during the Spring '10 term at University of Phoenix.
- Spring '10