Public and Private Goods
Q:
One quick question about public goods. A few times throughout the solutions to the practice problems, it is stated that public goods are not required to be non-excludable, but merely need low-rivalry.
However, the book and my section notes tell me otherwise (that both are required). Which is correct?
A:
Go with what is in the section notes and the book. As a refresher:
Private goods: excludable and rival
Public goods: neither excludable nor rivel
Common resources: rival but not excludable
Natural monopoly: excludable but not rival
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