Difference Between Public and Private Goods
Public goods have two distinct aspects: nonexcludability and nonrivalrous consumption. Non rivalry means consuming good doesn’t reduce amount available to other people and Non excludable means once provided you can’t stop anyone consuming it.Private good, a product or service produced by a privately owned business and purchased to increase the utility, or satisfaction, of the buyer. The majority of the goods and services consumed in a market economy are private goods, and their prices are determined to some degree by the market forces of supply and demand. Pure private goods are both excludable and rivalrous, where excludable means that producers can prevent some people from consuming the good or service based on their ability or willingness to pay and rivalrous means that one person’s consumption of a product reduces the amount available for consumption by another.