Examples Country Clubs Cable TV 11 Congestible Public Goods Rivalry but no

Examples country clubs cable tv 11 congestible public

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Examples: Country Clubs, Cable TV
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11 Congestible Public Goods Rivalry but no excludability There are public goods where, after a point, the enjoyment received by the consumer is diminished by crowding or congestion. These are called Congestible Public Goods . Examples: roads and parks
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12 Figure 4.2 A Congestible Public Good Number of Consumers per Hour 0 Marginal Cost 1 Marginal Cost per User
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13 A B C H E x c l u d a b i l i t y Rivalry 0 1 1 Figure 4.3 Classifying Goods According to the Degree of Rivalry and Excludability of Benefits from Their Use
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14 Education as a Public Good Education is a service that has some characteristics of a public good and some characteristics of a private good. External benefits It helps us live in a civil society. It has a “socializing ” function. It teaches the importance of following rules, obeying orders, and working together. It provides students with basic skills like punctuality and the ability to follow directions that increase their productivity as workers. It helps students identify their abilities and choose appropriate occupations, thereby increasing productivity levels for a nation.
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15 Education as a Private Good Education has characteristics of a private good. Wide disparities exist in the quantity and quality of education provided among school districts. The level of support that parents can give students at home increases with income and home support is an important factor in learning for children. There is no way to prevent parents who want more than a standardized quantity and quality of education for their children from buying it in the marketplace.
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16 Demand For a Pure Public Good Market demand for a Pure Private Good is derived by adding quantities demanded at each price. Demand for a Pure Public Good is derived by adding how much people will be willing to pay at each quantity.
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17 Figure 4.4 Demand For a Private Good Price per Loaf of Bread (Dollars) Loaves of Bread Purchased per Week 7 6 5 4 3 2 1 0 1 2 3 4 5 9 10 6 8 7 E S = MC = AC D C = MB C D B = MB A D A = MB A D = Q D
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