Compare and Contrast of Goods

Learning Team Assignment: Differentiating Between Market Structures Table and Paper

High End Denim Jeans and the Fashion Industry

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ECO 212

Compare and Contrast of Goods

“Rivalry and excludability define what goods the governments should provide or manage.” (Market Liberal, n.d.). Goods can be categorized into four different categories. These four categories are: public goods, private goods, common resources and natural monopolies. To compare and contrast these categories, they are put into two additional categories where the good has excludability which is the “ability of producers to detect and prevent uncompensated consumption of their products and rivalry which is the inability of multiple consumers to consume the same good” (Market Liberal, n.d.).

Private goods are both rival and excludable. If one consumer purchases an item, another consumer cannot purchase the same item. Examples of public goods include food, clothing, and agriculture like sugar and coffee such as that served at Starbucks. A public good is a non-rival and non-excludable good that benefits almost everyone. Examples of this benefit include law enforcement and the national defense system. Common resources are rival and non-excludable. “Forest land in many poor countries is a common resource. If one person cuts down a tree, no one else can use that tree. But if no one has a property right to the forest, no can be excluded from using it” (Hubbard & O’Brien, 2010). The last of the categories is natural monopoly. A natural monopoly is any non-rival and excludable good such as utilities like water, electricity, and natural gas. Governments should take heed to watch natural monopolies and regulate the good produced through this market.

Labor market equilibrium is affected by the supply and demand of labor.

Labor market equilibrium is affected by supply and demand for labor in establishing a balance between supply and...