Checkpoint Week 4
Axia College Material
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| Salad Bowl| Yes. I paid for it, I’m the one who ate it therefore, no one else can benefit from it. | Yes, because it is possible for me to prevent someone else from eating my salad bowl. | Public Good| Fireworks| No. when they are being watched, they do not bring down the ability to be seen by other people| No. They are a public showing that happens every year on the 4th of July. It is free and open to the public| Common Resource| Water| Yes. When I drink water from a gallon jug in the house, I leave less and less for someone else to drink| No, Water is so common to get because we can get it out of the faucet, the store or rivers and oceans. | Natural Monopoly| CD | No, If I used the cd to listen to, it has the same benefit if I let someone else borrow it to listen to| I do not have to let anyone borrow my cd therefore it is all mine and my benefit only. |
1. What is the difference between a public good and a private good? Public goods can be used by anyone in the public for free and private goods have to be paid for and are impossible for someone else to benefit from once used
2. What is a common resource?
They are goods that are not able to benefit anyone else but the person who uses it but are easily obtainable by anyone who wants it. It is a rival in consumption but not excludable.
3. What is a natural monopoly?
When a good is excludable but not a rival in consumption. People can be prevented from using this product or service but anyone else who wants to use it can...