Examples of public good in the following topics:
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- The aggregate demand curve for a public good is the vertical summation of individual demand curves.
- The aggregate demand for a public good is derived differently from the aggregate demand for private goods.
- The marginal benefit of a public good diminishes as the level of the good provided increases.
- Public goods are non-rivalrous, so everyone can consume each unit of a public good.
- The aggregate demand for a public good is the sum of marginal benefits to each person at each quantity of the good provided .
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- To determine the optimal quantity of a public good, it is necessary to first determine the demand for it.
- Often, the government supplies the public good.
- The supply curve for a public good is equal to its marginal cost curve.
- The public good provider uses cost-benefit analysis to decide whether to provide a particular good by comparing marginal costs and marginal benefits.
- The optimal quantity of public good occurs where MB = MC.
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- The free-rider problem is when individuals benefit from a public good without paying their share of the cost.
- It is easy to think about public goods as free.
- However, even public goods need to be paid for.
- Public goods, as you may recall, are both non-rivalrous and non-excludable.
- National security is a public good: it is both non-rivalrous and non-excludable.
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- A public good is a good that is both non-excludable and non-rivalrous.
- Public goods can be pure or impure.
- Impure public goods are those that satisfy the two conditions to some extent, but not fully.
- Consumers can take advantage of public goods without paying for them.
- A streetlight is an example of a public good.
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- Private goods: Private goods are excludable and rival.
- Club goods: Club goods are excludable but non-rival.
- Public goods: Public goods are non-excludable and non-rival.
- Examples of public goods include the air we breathe, public parks, and street lights.
- Public goods may give rise to the "free rider problem. " A free-rider is a person who receives the benefit of a good without paying for it.
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- For substitute goods, as the price of one good rises, the demand for the substitute good increases.
- Conversely, the demand for a substitute good falls when the price of another good is decreased.
- Two goods that complement each other have a negative cross elasticity of demand: as the price of good Y rises, the demand for good X falls.
- Two goods that are substitutes have a positive cross elasticity of demand: as the price of good Y rises, the demand for good X rises.
- Two goods that are independent have a zero cross elasticity of demand: as the price of good Y rises, the demand for good X stays constant.
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- Most manufacturing organizations usually divide their inventory into raw materials, work in process, finished goods, and goods for sales.
- Most manufacturing organizations usually divide their inventory into raw materials, work in process, finished goods, and goods for sales.
- A good only partially completed during the manufacturing process is called "work in process. " When the good is completed as to manufacturing but not yet sold or distributed to the end-user, it is called a "finished good. "
- Finished goods: Goods ready for sale to customers.
- Finished goods is a relative term.
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- What goods and services should be produced?
- Since not everything can be produced, some goods must be sacrificed for other goods.
- There are often different ways to produce a good.
- The amount of the good to be produced may influence the ways in which a good is produced
- The distribution of goods among the members of society may also influence the ways in which different goods are valued.
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- Imports are the inflow of goods and services into a country's market for consumption.
- It is a good that is brought in from another country for sale.
- Imported goods or services are provided to domestic consumers by foreign producers.
- While imports are the set of goods and services imported, "imports" also means the economic value of all goods and services that are imported.
- Comparative advantage is the concept that a country should specialize in the production and export of those goods and services that it can produce more efficiently than other goods and services, and that it should import those goods and services in which it has a comparative disadvantage.
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- Unsought Goods are goods that the consumer does not know about or does not normally think of buying.
- Once the consumer is well-educated about the product, the good goes on to become a sought good.
- However, due to concerns the American public would reject a product with a German name, American sauerkraut makers relabeled their product as "Liberty cabbage" for the duration of the war.
- This was to prevent the good from becoming an unsought good.
- A similar case was that of organ meats during World War II: the American public initially rejected hearts, livers, etc., which were required due to food shortages.