ECON1101 Chapter Notes - Chapter 10: Australian Defence Force, Private Good, Marginal Utility
13 Oct 2018
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Chapter 10 public goods education, health care, the judiciary system, national defence, infrastructure. Pure public goods: pure public goods represent goods that are perfectly nonrivalrous and non-excludable: Light house (nr: boat benefiting from its guiding light at night does not impede other boats from benefiting as well. Ne: no one can exclude a boat from benefiting from the lighthouse. ) Australian defence force (ne: no one can be excluded and nr: the defence of an extra person does not diminish your own safety). Non-ri(cid:448)alr(cid:455): o(cid:374)e i(cid:374)di(cid:448)idual"s (cid:272)o(cid:374)su(cid:373)ptio(cid:374) of the good does (cid:374)ot i(cid:373)pede a(cid:374)other individual from consuming it as well: the mc of providing the public good to an additional individual is equal to zero. Non-excludability: no one can be excluded from consuming the good . Impure public goods: impure public goods represent goods that are nonrivalrous and non-excludable only up to a point. Park, defence (non-excludable/ not completely non-rivalry due to excess population) non-rivalrous & excludable goods: fox tv:
