Goods are tangiable items which satisfy human wants and needs.Humans find them important and desirable so they make efforts to acquire them.In modern economies goods are classified into three main categories namely,1.pure private goods 2.pure public goods 3.mixed(quasi/public) goods and they are outlined in the passage below. Pure private goods
These are all the goods produced by private companies whose aim is to make a profit and they are used exclusively for the satisfaction of private needs for example food,clothing and property.They are not free goods,they come with a price and cannot be substituted with other goods. One of the features of pure private goods is that they are produced by private firms whose main aim is to make a profit.These private firms identify individuals’ private needs for example clothing and then they undertake intreprenuerial activities to satisfy them while at the same time earning profit.Private firms compete against each other in order to get a higher market share and consequently this results in high quality goods being produced. The second feature is that these goods are distributed in the market against a price.Access to these goods is not free but implies a cost called a price which the firms charge on consumers.The price is established by the free interplay of market forces,demand and supply.The market brings together producers and consumers who are both willing and able to buy the goods. Pure private goods are also financed out of private revenues.For the costs which the firms incur,they pay out of their private funds which are usually the proprietor’s capital and retained profits.When these are not sufficient,they can get some bank loans. These goods are also excludable.Only those indviduals who pay for them get to consume them.Those without income,with different tastes and preferences as well as those incompatible with some technical features of the products are denied the chance to consume them.Someone who cannot afford a...
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