Macroeconomics Assignment Example | Topics and Well Written Essays - 250 words - 6

Macroeconomics - Assignment Example From this discussion it is clear that public goods are characterized by non-rivalry, which means that after consumption, there are still in plenty for others to enjoy it. In addition, non-excludability is a characteristic that occurs when it is impossible to produce a good without the possibility of others enjoying it. On the other hand, private goods have a rivalry that after the consumption, it is unavailable to others. It is in this respect that they are possible to produce goods with the possibility of enjoyment of others. The non-rivalry and non-excludability feature characterize the public and private goods. The citizenship can enjoy both the two levels of goods with satisfaction.As the study highlights there is a free-rider problem in public good because of non-excludable. It refers to the ability where one cannot stop the other from consuming it. Non-rival also means that consuming the good does not lower its availability. An example for this outfit is the local police who ar e considered as a public good because of their non-rivalry. Local TV services are private as people usually pay for them. The variations based on rivalry index on goods makes them a concern for consumption and hence worth understanding.  A price index is a consideration that a manager ought to keep a keen focus on especially in determining the best product to optimize. I take a consideration of the two products A and B and subject them to the system, which shows that the marginal utility of dollar (z) MUA is 2 while MUB is 0.53.