A pure private good has two characteristics: rivalry and excludability.Rivalry suggests that a private market,rather than the public sector,should produce the good,and excludability suggests a private market will provide it.

Question

Quizplus · Accepted Answer

This statement is true. Rivalry means that consumption of the good by one person diminishes its availability to others, creating competition or rivalry for the resource. Excludability means that it is possible to prevent non-paying individuals from using the resource, making it exclusive to paying customers. These two characteristics are the basis for why private markets are best suited to provide pure private goods.

A Pure Private Good Has Two Characteristics: Rivalry and Excludability