Compare and contrast the difference in private and public goods based on the characteristics of “rivalry” and “exclusion.”
Please provide the best answer for the statement.
Two basic characteristics of true “public goods” are that there is no rivalry and no excitability. With a private good, there is rivalry because when one person buys the product it is not available for purchase or use by another person. With a public good, if one person benefits from the good it does not mean that other people do not benefit, so there is no rivalry. Also, with a private good people can be excluded from benefiting from it. With a public good there is no excitability. Once the public good is provided it is not possible to exclude people from benefiting from it.
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Since resources are not equally substitutable across uses: a. the production possibilities curve will be positively sloped. b. the production possibilities curve will be a straight line
c. the production possibilities curve will be bowed outward. d. the production possibilities curve will be bowed inward.
Unemployment:
A. can have serious social consequences. B. changes primarily because of macroeconomic forces. C. can create uncertainty about the future. D. All of these are true.
If an oligopolist is going to change its price or output, its initial concern is
A. The response of its competitors. B. The concentration ratio. C. A change in its cost structure. D. The response of the Federal Trade Commission.
Sulfur Dioxide Discharged (Tons)Firm AFirm B10$10,000$12,000911,00017,000813,00022,000716,00026,000620,00033,000Table 16.4Table 16.4 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. If Firm B would like to purchase one permit to be able to discharge 9 tons of sulfur dioxide, what is Firm B's willingness to pay?
A. $2,000 B. $3,000 C. $4,000 D. $5,000