Chp. 11

Chapter 11 is mainly about the types of goods there are in a market. For example, a good can be public, private, common resource, or natural monopoly. If the good is public then it is not excludable, does not require payment, and is not rival in competition, one person's use of the good diminish the opportunity for others. Private goods are excludable and rival in competition, common resource goods are not excludable and rival in competition, and natural monopolies are excludable and not rival in competition. A public good is always associated with positive externalities that will be subsidized while common resources are associated with negative externalities and become regulated by the government. In the private market, people known as free riders, people who receive the full benefit of something while avoiding payment, cause externalities for companies and in response private companies produce less to give free riders less of an incentive to free ride.