Compare and contrast public goods, private goods, common resources, and natural monopolies
Public goods is a product that an individual can consume without decreasing its accessibility to another individual and without segregation. Economists refer to public goods as "non-rivalrous" and "non-excludable". National defense, sewer systems, public parks and basic television and radio broadcasts all fall into consideration for public goods. One problem with public goods is the free-rider problem that benefits from the product without paying for it. For example, if a person fails to pay his taxes, he still receive the same benefits as his paying neighbors. Private goods is an item of consumption is used by one party and not available for others to use; things like food and clothing are intended for only one party. A private good IS rival and excludable. Another example of a private good is a neighbor’s house. A manufacture or builder may have three design style of homes to build in any given community and cannot afford to supply a house to everyone in the population to own one. This will also grant each owner excludable meaning he or she does not have to allow anyone else to occupy or live in the home. Common resources is a resource freely accessible to all members of the public who wish to obtain benefits from it. Examples are nature-made, like forests, rivers, and lakes, while others are made by humans as in canals and reservoirs. Common resource are difficult to limit its access to the public and are vulnerable to overuse. The greediness of a few individuals can ruin the resource for the community at large. An example using a public fishing ponds would fit if one person caught more fish than the law allowed or stated was the maximum limit then it would lead to harming everyone's a change to benefit from that pond’s fish products. This is also reflective to government bans on off seasonal hunting and fishing to keep the products population levels fair for all to...
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