Chapter Checkpoint
Study Plan Problems and Applications
Use the following list of items to work Problems 1 and 2.
New Year’s Eve celebrations in Times Square, New York
A city’s sewer system
New York subway system
A skateboard
Cable TV
Niagara Falls
Classify each of the items in the list as a private good, a public good, a common resource, or a natural monopoly good. Explain each classification.
For each public good in the list, is there a free-rider problem? If not, how is the free-rider problem avoided?
Table 1 sets out total benefit from a public ...
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