Tag: Public Goods
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Principles of Economics: Public and Common Goods
To define Public Goods we need two concepts: Excludable goods and Rival goods. Excludable goods can be prevented from use (food) in contrast to non-excludable goods that can always be consumed (radio or air). Rival goods cannot be consumed without diminishing others’ use of it (food) in contrast to non-rival goods (mp3-files). Based on the…