Chapter 1 (section 6)

Rival good or services

A rival good or service is one in which the user is the only consumer. Once the good is consumed it is no longer available for someone one else can consume the product or there could be multiple consumers but only one user can consumer the good at a time.

Excludable

Excludable implies exactly what it means: there are barriers in acquiring the good making it possible that the consumer may be prevented from obtaining the good or service.

semi-private goods.

Goods and services that are either non-rival and excludable or rival and non-excludable are referred to as semi-private goods. Movies, at the theater, are another example.

Food for thought

Goods and services that cannot be denied to anyone are known as non-excludable.

What are goods?

Goods are tangible products while services are intangible products.

Private goods

Pure private goods are those that are excludable and rival. A fast food hamburger is a pure private good. You have to pay for it, so it is excludable, and when you eat it no one else can.

Non-rival good

The opposite of a rival good is a non-rival good. These goods and services can be consumed by more than one person at the same time.

Public Good

a public good or service is both non-excludable and non-rival. Public education, the local municipal park, and national defense are goods and services that everyone can obtain, and we consume them at the same time.