Microeconomics

Detalii

Categorie: Microeconomics

Ultima actualizare: 18 August 2017

Accesări: 2844

Definition of Public and Private Goods

A public good is a good that fulfills both of the following two criteria: Nonrival. One individual’s consumption of the good does not affect any other individual’s consumption of the same unit of the good. Examples include lighthouses, television, parks, military defense, and streets with little traffic.

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Detalii

Categorie: Microeconomics

Ultima actualizare: 18 August 2017

Accesări: 2416

If the firm rents its capital, the problem of how much to rent is, more or less, the same as the problem of how much labor to use. It rents precisely so much that the rental rate becomes equal to the marginal revenue product of capital (compare to Labor), i.e. until

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