For each of the following \'goods\' explain whether consumption is rivalrous or

Question

For each of the following 'goods' explain whether consumption is rivalrous or non- rivalrous and whether consumption is excludable or non-excludable. (a) A very large park near a very small town. (b) A very small park near a very large city. (c) A 6 - lane bridge is built that will permit usage of up to 120,000 vehicles per day with no congestion, reduction in speed or disruption of traffic flow. The bridge is not tolled. Daily usage of the bridge is 70, 000 vehicles per day. (d) A 6- lane bridge is built that will permit usage of up to 120, 000 vehicles per day with no congestion, reduction in speed or disruption of traffic flow. The bridge is tolled. Daily usage of the bridge is 70, 000 vehicles per day (e) Policies that are adopted with the aim of increasing global climate stability. (f) A small country undertakes efforts at the national level to eradicate a mosquito that is a known vector of a communicable disease.

Explanation / Answer

According to the Chegg answering guidelines, i will answer the first four questions only.

If consumption of a good reduces the availability of that good for others then there exists rivalry in consumption and if it does not reduces the availability of the good then it is non rivalrous.

If one can be excluded from the consumption of a good, then the good is excludable in nature and if one cannot be excluded from consumption of a good then the good is non excludable in nature.

a) A very large park near a small town has a large area. So, if one person enters the park, it doesnot reduces the scope for others to enter the park. Thus it is non rivalrous in consumption. Again, no persons can be excluded from entering into the park, who ever comes to visit it as it is open for all. Thus it is non excludable in consumption.

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b) A very small park has a smaller area and when the park is congested with many individuals, it reduces the availability of the park to other individuals. Thus it is rivalrous in consumption. Again, no persons can be excluded from entering into the park, who ever comes to visit it as it is open for all. Thus it is non excludable in consumption.

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c) A 6 lane bridge which is not tolled is non excludable in nature since any car can use it without paying a fee. Again it is also non rivalrous in consumption since the number of vehicles which can use the bridge is 120000 and only 70000 vehicles actually uses the bridge. Thus one vehicles usage doesnot reduces the availability of the bridge to other vehicles.

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d) A 6 lane bridge which is tolled is excludable in nature since a vehicle can not use it without paying a fee. Again it is also non rivalrous in consumption since the number of vehicles which can use the bridge by paying a fee is 120000 and only 70000 vehicles actually uses the bridge. Thus one vehicles usage doesnot reduces the availability of the bridge to other vehicles.

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