A private good is a good that:
A) is available for everyone to consume, regardless of who pays.
B) cannot result in external benefits or costs to those who don't consume.
C) is consumed by a single person or household.
D) cannot be used by private citizens.
A private good is a good that is privately owned by an individual that maximizes his utility. The consumption of a private good prevents the consumption of it by other individuals.
Answer and Explanation: 1
The option (C) is correct.A private good is rivalrous and excludable. That is if an individual uses a private well then it is not available to others...
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fromChapter 1 / Lesson 19
Learn the definition of a private good and find how it differs from a public good. Explore the characteristics of private goods and review various examples.