Next time, click the stars (or press S) to bookmarkdifficult terms for review.
nonrivalry and nonexcludability.
If one person's benefit from the good it does not reduce the benefit available to others
free riders cannot be barred from receiving the benefits
street lights in a city or the war on terrorism
Public good has benefits that are available to all, regardless of payment
private firms cannot stop consumers who are unwilling to pay for such goods from benefiting from them.
individuals who are unable or unwilling to pay for a good cannot be excluded from the benefits provided by that product
people will not voluntarily pay for something that they can obtain without paying.
a good for which exclusion could take place but that has such large spillover benefits that government provides it to prevent an underallocation of resources.
public higher education