What Are the Basic Differences Between a Public Good and a Private

question 29

Essay

What are the basic differences between a public good and a private good?

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Definitions:

Efficiency Gains

Improvements in the use of resources that allow for more output without increasing the input.

Natural Monopoly

A market condition in which a single firm can provide a product or service at a lower cost than any potential competitors, often due to economies of scale.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of the operation increases.