Chapter 11

Chapter 11 is about different goods in the market and how they can be separated.
They can be excludable or rival in consumption.
An excludable good, is a good that can cause people to be prevented from using the good, usually involving price.
A rival in consumption means that one person's use of a good reduces another person's ability to use the same good.
These are are exemplified using the Punnet Square.
The different types of goods are public, private, common resource, and natural monopoly.
A public good is a good that is neither rival in consumption nor excludable.
A private good is excludable and rival in consumption.
A common resource is rival in consumption, but isn't excludable.
A natural monopoly is excludable, but isn't rival in consumption.
Public goods are government made and have positive externalities.
Private goods are government made and have negative externalities.