The government of Jacksonia produces and sells cream cheese. Nobody is allowed to consume cream cheese without paying for it, and only one person can consume a given block of cream cheese.

What kind of good is cream cheese?

Choose 1 answer:
(A) public good
B) private good
(C) perfectly competitive
D) common resource
(E) artificially scarce

Question

The government of Jacksonia produces and sells cream cheese. Nobody is allowed to consume cream cheese without paying for it, and only one person can consume a given block of cream cheese.

What kind of good is cream cheese?

Choose 1 answer:
(A) public good
B) private good
(C) perfectly competitive
D) common resource
(E) artificially scarce

Accepted Answer

∻Solution∻ ‖ a ⋮ Definition of Goods: Goods can be classified based on their excludability and rivalry in consumption. ‖ ‖ b ⋮ Excludability and Rivalry: A private good is both excludable and rival in consumption. This means that individuals can be prevented from using the good, and one person's use of the good reduces its availability for others. ‖ ‖ c ⋮ Application to Cream Cheese: Since the government of Jacksonia ensures that nobody can consume the cream cheese without paying (excludability) and only one person can consume a given block of cream cheese (rivalry), the cream cheese fits the characteristics of a private good. ‖ ∻Answer∻ ⚹ B) private good ⚹ ∻Key Concept∻ ⚹ Private Good Characteristics ⚹ ∻Explanation∻ ⚹ Cream cheese is a private good because it is excludable and rival in consumption, meaning individuals must pay to consume it, and one person's consumption prevents others from consuming the same unit. ⚹◊What are the characteristics that differentiate public goods from private goods in economics⍭ Generate me a similar question◊

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