Answer to Question #209536 in Microeconomics for Y, Smith

Question

Explain the difference between public good and private good and give one example of each. Explain how the elements of inappropriately relate to public goods and private goods.

Answer 1

Public goods refer to commodities and services that are open for the commodity members to consume, while private goods refer to commodities and services that have restricted ownership. An example of a public good is the clean air for breathing, and an example of private goods are clothes. In public goods, the elements of inappropriately include non-excusable and non rival. This means that the consumption of the good by one party does not prevent others from using it. It is also impossible for one consumer to be excluded from using it. A private good is the opposite of public good. The goods are excusable. The benefits that are gained from consumption are excusable from other consumers.