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

2919 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is deadweight welfare loss and how is it shown on a market failure diagram?


Focusing on YED, please explain the type of Goods?


Describe the impact of a close competitor lowering the price for their good has on the price and output of a firm, use a demand-supply diagram to help explain your answer.


Define collusion, including a brief explanation of the different types of collusion, and explain why firms in an oligopolistic market would want to collude.


We're here to help

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

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning