Asked by Jocelyn Raygoza on May 07, 2024

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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.
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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.