1. 20 Public Goods and Common Resources Private goods Artificially scarce goods Common resources Public goods Rival in consumption Nonrival in consumption Excludable Non- excludable

2. 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

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

4. More than one person can consume the same unit of the good at the same time. Nonrival in Consumption Output Price ($) 2004006008001000 5 10 15 20 25 30 35 40 MC Demand  perfect competition would drive the price to zero