Monday
September 1, 2014

Homework Help: Econ MC

Posted by Anonymous on Monday, March 12, 2007 at 11:24pm.

When goods are not excludable
a. the good will be produced as a private good but not as a public good. b. the good will not be
produced since no one values it.
c. the free-rider problem prevents the private market from
supplying them.
d. everyone can have all they want and the good will have a zero price.

I was thinking about b or d.

Hmmmm, I guess "none of the above" is an acceptable answer. If thats the case, I would go with d)

Consider and example of a non-excludable good. Consider a street where someone plants a bunch of flowers. The beauty of the flowers can be enjoyed by anybody, no price can be charged by anybody looking at the flowers. So: People as well as governments and civic associations plant such flowers. So the good often is a public good. Scratch a). The flowers exist, they are planted. Scratch b). While the planting produces benefits to those besides the planter, the private market still provided the good. So, scratch c).

Finally, I would wish the planter would plant even more flowers. So, in this sense, I am not getting all I want. Scratch d)?? (alternatively, once the planter selects and plants his flowers, I can enjoy this fixed amount as much as I want at a zero price. So, in this sense, d) would be correct.

Sorry, I wanted to write, 'I guess "none of the above" is NOT and acceptable answer.'

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