What are the two characteristics that differentiate private goods from public goods?
A) rivalry and excludability
B) negative externality and positive externality
C) marginal cost and marginal beneﬁt
D) ownership and usage

Question

Quizplus · Accepted Answer

Private goods are characterized by rivalry, meaning that one person's consumption of the good reduces the amount available for others, and excludability, meaning that it is possible to prevent someone from using the good if they do not pay for it. Public goods, on the other hand, are non-rivalrous and non-excludable.

What Are the Two Characteristics That Differentiate Private Goods from Public