Explain which category each of the following goods falls into (private good, public good, common resource...

Explain which category each of the following goods falls into (private good, public good, common resource or natural monopoly):

a. Police protection

b. Snow plowing

c. Education

d. Rural roads

e. City streets

Solutions

Expert Solution

Answer) I will first define what various kinds of goods mentioned here mean,they are as follows

Private good-A good whose property rights are exclusive to someone who bought it that is not everyone can have access to it,only those who paid for it/fulfilled certain conditions are eligible for it,while for others access to these goods is restricted
Public good-Goods that are available to all and use by one individual does not reduce its benefit to others
Common resource-Similar to public goods,they are available to all,but use by one decrease its value for others
Natural monopoly-A type of monopoly owing to certain barriers as well as huge economies of scale,that is not much choice for competitors after first mover(first mover advantage)

Based on definitions above given given goods can be classified as follows

Police protection-It is a public good as police protection is available to all and use by one does not decrease value of police protection for others
Snow plowing -It is a public good because if snow plowing is done off streets it is done for all and does not decrease value for any
Education is a private good as college asks you for tuition fees which means it is not accessible for all and access is restricted to only those who pay for it
Rural roads can be classified as a natural monopoly-Please note difference between rural roads and city streets is vehicular movement,while in city it is more,in rural areas it is negligible in comparison to city,thus in rural areas roads need not be repaired much once made properly which means first mover has advantage and there is negligible competition for road building in rural areas, thus rural roads can be classified as natural monopoly
City streets as described in above point has substantial vehicular movement which also leads to lesser road available to every individual,however there is no restriction to who can use it,that is this good is accessible to all ,but utilization by every individual decreases utility derived by other,this matches clearly with our definition of common resource,thus city streets can be classified as common resource.

Answer is complete.Thank you!

Rahul Sunny answered 2 hours ago

Next > < Previous

Related Solutions

Explain which category (Public Good, Private Good, Club Good or Common Resources) each of the following goods...

Explain which category (Public Good, Private Good, Club Good or Common Resources) each of the following goods falls into and why: police protection snow plowing education rural roads city streets Why do you think the government provides items that are not public goods? (free-riding)

Use the following classification to determine which category each of the following goods falls into. ...

Use the following classification to determine which category each of the following goods falls into. GoodsPrivate GoodClub GoodCommon ResourcePublic Good Snow plowing of public streets immediately after a heavy snowfall Local street lighting Museums that require admission fees Congested city streets Flu vaccine

Use the following classification to determine which category each of the following goods falls into. ...

Question 1 a. Define a (i) private good; (ii) public good; and (iii) common resource. b....

Question 1 a. Define a (i) private good; (ii) public good; and (iii) common resource. b. What is a “free rider problem,” and what challenge does it pose for the private production of public goods and services? c. How is the demand for a public good different from the demand for a private good? d. Outline the role government plays in the provision of public goods.

Classify the following goods and services as private goods, common resources, artificially scarce goods, or public...

Classify the following goods and services as private goods, common resources, artificially scarce goods, or public goods. Health insurance is Radio spectrum is A video on Netflix is A mosquito control program in a city is Studying space in library is

Some resources are private, others are common, and still others are public. Define a private resource,...

Some resources are private, others are common, and still others are public. Define a private resource, common resource, and public resource, explain your definitions, and provide one example of each. What problem prevents the efficient provision and management of a common resource by private unregulated markets? What problem prevents the efficient provision and management of a private good or service by private unregulated markets? What is the obstacle to the efficient production by free markets of goods and services like...

Classify each of the following items as a public good, a private good, a natural monopoly...

Classify each of the following items as a public good, a private good, a natural monopoly good, or a common resource, and explain your classification. A car licenses Tuna in the Pacific Ocean Airline service within Canada A cinema A local storm-water system

Explain whether the following goods and services are private, public, mixed or merit goods in terms...

Explain whether the following goods and services are private, public, mixed or merit goods in terms of their rivalry and excludability 2.1. A game reserve (2) 2.2. A cell phone (mobile phone) (2) 2.3. Private security services (2) 2.4. Education (2) 2.5. The National Defence Force

Explain the concepts and compare them with examples Private good Pure Public good Impure Public good...

Explain the concepts and compare them with examples Private good Pure Public good Impure Public good In which of the above categories will you place Indian railways. Give reasons for your answer.

Explain how the elements of nonappropriability relate to public goods and private goods.

Subjects