An important characteristic of private goods is
A) the nonexclusion principle.
B) the principle of rival consumption.
C) the principle of joint consumption.
D) the principle of conspicuous consumption.

Question

Quizplus · Accepted Answer

The principle of rival consumption means that the consumption by one individual reduces the quantity available for others. This is an important characteristic of private goods, which are typically rivalrous in consumption. Nonexclusion principle is a characteristic of public goods, joint consumption is a characteristic of club goods, and conspicuous consumption is not a characteristic of goods but a concept related to status signaling through consumption.

An Important Characteristic of Private Goods Is