01:220:102 Chapter Notes - Chapter 17: Private Good, Netflix, Marginal Cost

• School: Rutgers University
• Department: Economic
• Course: 01:220:102
• Professor: J A C K Skydel

Document Summary

A good is excludable if the supplier of that good can prevent people who do not pay from consuming it. A good is rival in consumption if the same unit of the good cannot be consumed by more than one person at the same time. When a good is both excludable and rival in consumption, it is called a private good. Wheat is an example of a private good. It is excludable: the farmer can sell a bushel to one consumer without having to provide wheat to everyone in the county. And it is rival in consumption: if i eat bread baked with a farmer"s wheat, that wheat cannot be consumed by someone else. Some goods are nonexcludable the supplier cannot prevent consumption of the good by people who do not pay for it: ex. Goods are nonrival in consumption if more than one person can consume the same unit of the good at the same time: ex.