ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Moreover, the non-rivalry aspect of public goods means that the cost of supplying one more user i.e. the marginal cost, is zero; for example, once paving stones have been laid, it makes no difference how many people walk along them as there is no additional cost involved.

Detailed explanation-2: -Non-Rival Goods. Goods are either classified as rival or non-rival. A rival good is something that can only be possessed or consumed by a single user. A good that can be consumed or possessed by multiple users, on the other hand, is said to be a non-rival good.

Detailed explanation-3: -A good is considered non-rivalrous or non-rival if, for any level of production, the cost of providing it to a marginal (additional) individual is zero. A good is “anti-rivalrous” and “inclusive” if each person benefits more when other people consume it.

Detailed explanation-4: -Clean air; pollution abatement: The quality of the air we breathe in a particular neighborhood is both non-excludable and non-rivalrous. Pollution abatement is therefore a public good.

Detailed explanation-5: -The marginal cost of public funds (MCF) is a concept in public finance which measures the loss incurred by society in raising additional revenues to finance government spending due to the distortion of resource allocation caused by taxation.