Exercise #7

Explain the concepts of Rival, NonRival, Exclusive and NonExclusive in regards to Economics. What is the nonexclusive aspect of a public good?

(a) Please use the Matrix. Show the relationships between rival goods, nonrival goods, exclusive goods and nonexclusive goods with private goods, public goods, regulated monopoly, and tragedy of the commons. (8 points)

(b) Give examples from common social practice or class to illustrate your answer (you must use the concept and definition of the Coase Solution and Transaction Costs to explain this answer). (8 points)

(c) What is the nonexclusive aspect of a public good? (4 Points)