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With the aid of an appropriate example, explain what economists mean by the term public good.

      

With the aid of an appropriate example, explain what economists mean by the
term public good.

  

Answers


queen
A public good is a good (or service) which has two characteristics:
1. It is non-rival: This means that consumption by one person does not reduce the amount available for consumption by another person. The provision of street lighting illustrates the concept of non-rivalry, because if one person uses the light provided by the street light it does not prevent another person from benefiting fromthe light.
2. It is non-excludable: This means that once the good/service is provided no person can be excluded from benefiting. Using the example of street lighting again, once the light is provided no person on that street can be prevented from using it.
queen babito answered the question on July 9, 2018 at 12:04


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