–preventinganyonefromconsumingthegoodisrelativelyeasyNonexcludable––onceprovided,theadditionalresourcecostofanotherpersonconsumingthegoodispositiveNonrival–onceprovided,theadditionalresourcecostofanotherpersonconsumingthegoodiszero0TypesofGoodsEXCLUDABLERIVALYESNOYESNOPRIVATE GOODSPUBLIC MON RESOURCESNATURALMONOPOLYNoteworthyAspectsofPublicGoodsEventhougheveryoneconsumesthesamequantityofthegood,itneednotbevaluedequallybyallClassificationasapublicgoodisnotabsolute;moditieshavepublicgoodcharacteristicsPrivategoodsarenotalwaysprovidedonlybytheprivatesectorpubliclyprovidedprivategoodsPublicprovisionofagooddoesnotnecessarilymeanthatitisalsoproducedbythepublicsectorSomeOtherPublicGoodsBasicresearchProgramstofightpovertyUncongestednon-tollroadsFireworksdisplayEfficientProvisionofPrivateGoodsPriceAdam(DfA)Eve(DfA)Market(DfA+E)$11516$97310$79514$511718$313922$11511260DfADfEDfA+E0Sf$QuantityofPizza4-6ParetoEfficiency–PrivateGoodsCaseMRSfa=Pf/PaSetPa=$1MRSfa=PfDfAshowsMRSfaforAdamDfEshowsMRSfaforEveSfshowsMRTfaNecessaryconditionforParetoefficiency:MRSfaAdam=MRSfaEve=MRTfaEfficientProvisionofPublicGoodsUnitsofFireworks1234Adam(DrA)$300$250$200$150Eve(DfE)250200150100Market (DfA+E)$550$450$350$25000DrADrEDrA+ESrQuantityofFireworks$4-9ParetoEfficiency–PublicGoodsCaseMRSfa=Pf/PaSetPa=$1MRSfa=PfDfAshowsMRSfaforAdamDfEshowsMRSfaforEveSfshowsMRTfaNecessaryconditionforParetoefficiency:MRSfaAdam+MRSfaEve=MRTfa
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