Question

Which of the following is a characteristic that the market for public goods and the market for perfectly competitive goods share? Increasing returns to scale Rivalry of goods Excludability of goods None of these

Answer 1

can be mentioned that public goods are both non excludable and non rival where non excludable is the fact that one cannot be prohibited from using it and non rival is if one uses the use for others decreases the common factor that both public goods and perfectly competitive goods share is excludability where both cannot exclude someone their goods but rivalry can exist in perfect competition where if one over use is the good it can create a shortage for the other person where in a public good it is non rival in nature and therefore in this regard it can be mentioned that

(c) excludability of goods is the answer to this question