What is the difference between public goods and externalities?

Public goods are non-excludable and non-rival - i.e. you cannot be stopped from consuming the good and this does not affect others' consumption
Externalities are benefits/costs to a third party outside the market transaction
A public good such as knowledge could have positive externalities, but they are not the same thing

NS
Answered by Nicholas S. Economics tutor

2280 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Evaluate the likely microeconomic impact of an increase in the UK national minimum wage.


What is the Phillips Curve?


What is the likely effect of Brexit on the UK economy?


Explain 4 key sources of monopoly power.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences