Asked by Jocelyn Raygoza on May 07, 2024
Verified
If one person's use of good x diminishes other people's use of it, then good x is one of two types of goods. What are those two types?
Free-rider Problem
A situation where individuals or entities receive the benefit of a good or service without contributing to its cost, commonly associated with public goods.
Market Failure
A situation where the allocation of goods and services is not efficient, often leading to a net social welfare loss.
Goods
Physical items produced for sale or use, characterized by their tangibility and their capacity to satisfy human wants or needs.
- Recognize and scrutinize instances of commodities characterized by their competitive consumption and exclusivity.
Verified Answer
TG
Trinity GodinaMay 09, 2024
Final Answer :
As described, good x is rival in consumption, so it must be either a private good or a common resource.
Learning Objectives
- Recognize and scrutinize instances of commodities characterized by their competitive consumption and exclusivity.