Microeconomics,, 16th Canadian Edition

(rishikesh) #1

restaurant meal or a sofa) is known as a good and
is most efficiently provided by the.
b. A good that is rivalrous and non-excludable (e.g., fish in
the ocean or common grazing land) is known as a
and tends to be overused by.
c. Goods that are non-rivalrous and excludable (e.g., roads,
museums, and parks) are often provided by government
because the marginal cost of provision to society is
and so the allocatively efficient price is
d. Goods and services that are non-rivalrous and non-
excludable (e.g., national defence, a lighthouse) are
known as. Private markets will not provide these
goods or services because of the problem.
e. If an auto mechanic tells you that your car needs a new
transmission, there is the possibility of market failure in
the form of.
f. If you take up cliff diving as a new hobby and increase
your life insurance, just in case, there is a possible market
failure in the form of.

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