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Private Good

A private good is a product or service produced by a privately owned, profit-seeking business, and purchased to increase the utility, or satisfaction, of the buyer. The term private good refers to both goods and services, and most of the goods and services produced and consumed in a market economy are private goods. Prices of private goods, such as hamburgers, automobiles, and haircuts, are determined to some degree by market forces of supply and demand. Private goods are both excludable and rivalrous. Excludability means that producers can prevent people from consuming the good or service, with excludability most often based on the consumer’s ability and willingness to pay. Rivalrous means that one person’s consumption of a good or service prevents another from consuming it; ...

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