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Public goods are goods where it is too difficult to separate between payers and non payers (The technical term is non-excludable) and where there are plenty of the good and so there is no reason to deny someone else use of the good (non-rivaled).

For example, street lighting is a public good. The good is non-rivaled because somebody using the lighting does not make it less bright for other users. It is also non-excludable as you cannot make people pay for the good as they use it (You don't see coin slots on lamposts do you?)

Goods such as Public Heathcare (NHS etc) are made public through the use of government, as it is common in many countries to charge people for visiting a doctor with an illness but the government uses its funds to allow the good to be available to everyone without causing this to impact anyone elses healthcare. (Obviously things are not as perfect in the real world as we do need to queue for our doctor, drugs etc).

A private good is the opposite of a public good. It can no longer be used after consumption and is it is easy to make people pay for the good.

An example of a private good would be a BigMac. Once someone has eaten the BigMac, there is none left for anyone else. Also it is easy to charge people seperately for their BigMacs.

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Q: What is the difference between private goods and public goods?
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Difference between public goods and private goods?

Public goods are non-excludable and non-rival in consumption whereas Private goods are excludable and rival in consumption.


What are similarities and differences between common goods public goods private goods and natural monopolies?

Public goods are non-excludable, so they suffer from a free-rider problem.


What are public goods and private goods?

Public goods are goods meant for everyone to share. Private goods are goods meant for one person or one small group of people.


What would happen if public goods were marketed like private goods?

public goods would be overproduced


What is the Difference between private and public expenditure?

Public expenditure is a type of spending usually done by firms in the public sector, or government organisations, examples include: building of schools, dams, public and merit goods. Where as private expenditures are carried out by firms in the private sector of an economy, who have their main motive as profits. Examples of these expenditures include: setting up a factory, or expansion of a profitable outlet.


Why is it difficult for private industry to provide public goods?

Private industries mainly work for profit purpose. If they provide public goods then it has to be priced at lower rates which will diminish their profit margins. Thus, it is difficult for private players to provide public goods.


What describes the difference between individual and public goods?

People cannot be excluded from using goods while they can be excluded from using individual goods.


Why do you discuss private goods and public goods in economics?

because we have no lives


Does the homebuilding industry produce public goods or private goods?

service industry


Why are private companies unlikely to provide public goods'?

The non-excludability of public goods makes it difficult to profit from them.


Public goods are not typically produced by private companies because?

The non-excludability of public goods makes it difficult to profit from them.


What is the difference between retail and trading?

Trading is used to acquire goods from the people who produce them, and the retail sales business is how these goods are then sold to the general public.