Similarities and Differences between Common Goods, Public Goods, Private Goods, and Natural Monopolies

Similarities and Differences in the midst of Common Goods, Public Goods, Private Goods, and Natural MonopoliesIdentify similarities and differences between common level-headeds, public goods, private goods, and natural monopolies. Provide an modelling of each type of good and justify your answers. Discuss viable positive or negative externalities associated with each manikin. How do the externalities pertain the economy?Similarities?Each is guided by the economy.

Differences?Each is queer and different in reference to compete and exclusion.

Examples/Externalities?Common goods: rival but not excludable. Interstates and public highways would be a good example beca workout it is shared by each(prenominal) and beneficial to all members of society. A negative externality derived from the uptake of interstates and highways could be the nursery effect caused from gun for hire emissions from vehicles traveling on them.

?Public goods: neither excludable nor rival. Public parks would be a good example because one persons use of does not diminish another persons use, and at that place are no restrictions for the use. A negative externality could be that public parks attract unsavory characters i.e. drug dealers, strong-armer teens etcetera A positive might be that it?s a nice place to hold birthday parties, weddings etc. with large groups.

?Private goods: both excludable and rival.



Personally owned vehicles (POV?s) would be a good example because one person?s use of it would diminish another person?s use of it, and the use of it is restricted by the owner. A negative externality might be air pollution caused by gas emissions.

?Natural monopolies: excludable but not rival. Electricity would be a good example because it can be restricted to however those who pay for the service; however, one person?s use of it does not diminish another person?s use. A positive externality might be the social benefits of product and consumption of electricity i.e. cooking, heating and air conditioning etc.

ReferenceMankiw, N.

If you need to get a full essay, order it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper