Flashcards in Chapter 11 Micro Final Deck (26):
Rival in consumption but NOT excludable
Good that someone can be prevented from using
What is an example of a tragedy in commons
The Atlantic Ocean running out of fish due to people over fishing in it
What is an example of a Natural Monopoly
When Luxottica naturally started taking over sunglasses companies. Eventually they started taking over Lens Crafter, Ray Bands and Sunglasses Hut.
What is the tragedy of the commons?
Overuse of the resource that leads to an elimination of it
You can stop people from consuming it
Also effects others from purchasing the good
What is an example of a rival good?
A good consumers compete against that takes away from others use
What is an example of a public good?
What is an example of a free rider
Wegmans hosting a free tasting event
They encourage $5 donations to cancer fund
I do not donate and just eat the food for free
Anyone can enjoy it but everyone can IF they pay for it
Someone who consumes a service without paying for it
What is an example of an excludable good?
Money given to the consumers through the government
Can be used multiple times and never goes away
What is an example of a private good?
When something increases at a decreasing rate...
It slows down but continues to increase
The Money gained from anything
Non excludable goods
A good that any one can use NO MATTER WHAT
What is an example of a non excludable good?
What are 3 solutions of the tragedy of the commons?
What does the changing slope of the total cost curve reflect?
Decreasing the marginal product
What is an example of a non rival good?
Demi Lovato Song on iTunes
What is an example of a common resource?
Fish in the ocean
When I don't pay for it and me enjoying it does not impact others