Private Good

A private good is a good that is excludable and rivalrous in consumption. This means that it is possible to prevent someone from using the good, and that one person's consumption of the good reduces the amount available for others to consume.

Private goods are typically produced by private firms in a market economy. The market price of a private good reflects the value that consumers place on it.

Some examples of private goods include food, clothing, and cars.

Private goods are in contrast to public goods, which are non-excludable and non-rivalrous in consumption. This means that it is impossible to prevent someone from using the good, and that one person's consumption of the good does not reduce the amount available for others to consume.

Public goods are typically produced by the government or by non-profit organizations. The cost of providing a public good is shared by all taxpayers or members of the organization.

Some examples of public goods include national defense, public parks, and street lighting.

The distinction between private and public goods is important for understanding how the economy works. Private goods are typically produced by the market, while public goods are typically produced by the government. The allocation of resources between private and public goods is a key issue in public policy.