Managers in the public and not-for-profit sectors must optimize resource use under a variety of operating constraints. When issues of economic efficiency are encountered, the decision tools and criteria discussed throughout managerial economics can be applied across the entire spectrum of the economy. As issues of economic equity or fairness are addressed, economic theory and methodology can be used to understand and improve the public decision-making process.
Products or services in which consumption by one individual does not reduce the amount available for others private good
Products or services in which consumption by one individual precludes or limits consumption by others nonrival consumption
When use by certain individuals does not reduce availability for others nonexclusion concept
When it is impossible or prohibitively expensive to confine the benefits of consumption to paying customers
Was this article helpful?
Don't Blame Us If You End Up Enjoying Your Retired Life Like None Of Your Other Retired Friends. Already Freaked-Out About Your Retirement? Not Having Any Idea As To How You Should Be Planning For It? Started To Doubt If Your Later Years Would Really Be As Golden As They Promised? Fret Not Right Guidance Is Just Around The Corner.