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| Fax Machine, Computer, or Phone| No | Yes| Public Good| Oranges, Apples, or wood| Yes | Yes|
Common Resource| Water| Yes| Yes|
Natural Monopoly| Oil | No| Yes|
1. What is the difference between a public good and a private good? The difference between a public good, and a private good is that a public good is for everyone to use. The public good is provided for all to have use to such as a restroom, or water fountain. Now a private good will be when everyone is still able to use the good, but it can now come at some type of cost. An example here would be a library will charge some to make a fax or copy something. This is the differences between a public and private goods.
2. What is a common resource? Water would be a great example here. For a common resource is a natural or human made resource that others can still benefit off of. Such as water let’s just say you and the family want to go canoeing, but the in order to do so you have to pay in order to have the right to the water.
3. What is a natural monopoly? Oil, is a natural monopoly. It is one of the biggest natural monopolies that is at a high value today.