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.
Public goods are non-excludable and non-rival in consumption whereas Private goods are excludable and rival in consumption.
Public goods are non-excludable, so they suffer from a free-rider problem.
Public goods are goods meant for everyone to share. Private goods are goods meant for one person or one small group of people.
public goods would be overproduced
People cannot be excluded from using goods while they can be excluded from using individual goods.
Public goods are non-excludable and non-rival in consumption whereas Private goods are excludable and rival in consumption.
Public goods are non-excludable, so they suffer from a free-rider problem.
Public goods are goods meant for everyone to share. Private goods are goods meant for one person or one small group of people.
public goods would be overproduced
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.
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.
People cannot be excluded from using goods while they can be excluded from using individual goods.
because we have no lives
service industry
The non-excludability of public goods makes it difficult to profit from them.
The non-excludability of public goods makes it difficult to profit from them.
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.