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xeco212_appendix_c[1]finished - public good is not a fee...

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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 medication Yes there is Yes it is Public Good knowledge No there is not one person can not take it from another person No it is not Common Resource Congested freeway or interstate Yes, when too many people use the resource it loses its value Not usually, only toll roads offer this resource at a cost Natural Monopoly High speed fiber optic internet No there is not Yes it is a fee must be paid for the resource 1. What is the difference between a public good and a private good? In a public good the elements of non-rivalry and non-excludability both exist. The
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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 person’s 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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