Types of Goods

Goods are all those tangible things or commodities that are used to satisfy human wants. All the commodities having utility are called goods. The major types of goods are mentioned below. 

Private Goods

They are both excludable and rivalrous, where excludability means that producers can prevent some people from consuming the good or service based on their ability or willingness to pay and rivalrous indicates that one person’s consumption of a product reduces the amount available for consumption by another.

Public Goods

In economics, a public good is also known as a social good or collective good is a good that is both non-excludable and non-rivalrous, in that individuals cannot be excluded from use or could benefit from without paying for it, and where the use by one individual does not reduce availability to others or the good can be used simultaneously by more than one person.

Common Resources

Common resources or goods are goods that are rivalrous and non-excludable. This means that anyone has access to the good, but that the use of the good by one person reduces the ability of someone else to use it. A classic example of a common good are fish stocks in international waters; no one is excluded from fishing, but as people withdraw fish without limits being imposed, the stocks for later fishermen are potentially depleted.

Natural Monopoly Goods

A good that is nonrival but excludable is produced by a natural monopoly. A natural monopoly is a type of monopoly that exists due to the high start-up costs or powerful economies of scale of conducting business in a specific industry.

	Private Goods	Common Goods
Rival	Food and Drinks Car and Houses Cloths and Gadgets	Fish in Ocean Environment National Park
	Natural Monopoly Goods	Public Goods
Non-Rival	Internet Cable Television Bridge	National Defense The Law Traffic Control
	Excludable	Nonexcludable