20 Public Goods and Common Resources Private goods Artificially scarce goods Common resources Public goods Rival in consumption Nonrival in consumption.

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20 Public Goods and Common Resources Private goods Artificially scarce goods Common resources Public goods Rival in consumption Nonrival in consumption Excludable Non- excludable

Supplier cannot prevent consumption by people who don’t pay for it.  airport security  fireworks shows The market tends to underproduce nonexcludable goods. Tickets $10 Nonexcludable Goods

What a dump! I hope someone picks up this stuff. Free-Rider Problem

More than one person can consume the same unit of the good at the same time. Nonrival in Consumption Output Price ($) MC Demand  perfect competition would drive the price to zero