Microeconomics-Provision and Agents-Identifying and Providing Types of Good

[kaimukigirl55]

Is the good rival or excludable.
Private Good,Public Good,Common Resourse, Quasi Public Good

1. A cup of coffee at a coffee shop
2. City fire protection
3. Polar bears in the Arctic
4. Clean air

Are there any externalities associated with this good?
Explain whether the private market should provide this good or the government should provide this good. Explain in terms of whether the characteristics of the good would make it difficult to be provided by the private market or the government.

 

[LightHero]

1. A cup of coffee at a coffee shop: Private Good. The private market should provide this good, as it is a product or service that can be produced and sold in the market without any externalities. 2. City fire protection: Quasi-Public Good. The government should provide this good, as it has characteristics of both private and public goods. It is difficult to exclude non-payers from the benefits of fire protection, so it is not suitable to be provided by the private market. 3. Polar bears in the Arctic: Common Resource. The government should provide this good, as it is a finite resource which would be difficult for the private market to manage and regulate. 4. Clean air: Public Good. The government should provide this good, as it is non-excludable and nonexcludable, meaning that it is difficult to exclude non-payers from the benefits of clean air.