good

Examples of good in the following topics:

• Demand for Public Goods

  • The aggregate demand for a public good is derived differently from the aggregate demand for private goods.
  • The marginal benefit of a public good diminishes as the level of the good provided increases.
  • Public goods are non-rivalrous, so everyone can consume each unit of a public good.
  • The aggregate demand for a public good is the sum of marginal benefits to each person at each quantity of the good provided .
  • Unlike public goods, society does not have to agree on a given quantity of a private good, and any one person can consume more of the private good than another at a given price.

• Defining a Good

  • Private goods: Private goods are excludable and rival.
  • Common goods: Common goods are non-excludable and rival.
  • Club goods: Club goods are excludable but non-rival.
  • This type of good often requires a "membership" payment in order to enjoy the benefits of the goods.
  • Public goods: Public goods are non-excludable and non-rival.

• Cross-Price Elasticity of Demand

  • For substitute goods, as the price of one good rises, the demand for the substitute good increases.
  • Conversely, the demand for a substitute good falls when the price of another good is decreased.
  • Two goods that complement each other have a negative cross elasticity of demand: as the price of good Y rises, the demand for good X falls.
  • Two goods that are substitutes have a positive cross elasticity of demand: as the price of good Y rises, the demand for good X rises.
  • Two goods that are independent have a zero cross elasticity of demand: as the price of good Y rises, the demand for good X stays constant.

• Optimal Quantity of a Public Good

  • Unlike the market demand curve for private goods, where individual demand curves are summed horizontally, individual demand curves for public goods are summed vertically to get the market demand curve.
  • Often, the government supplies the public good.
  • The supply curve for a public good is equal to its marginal cost curve.
  • The public good provider uses cost-benefit analysis to decide whether to provide a particular good by comparing marginal costs and marginal benefits.
  • The optimal quantity of public good occurs where MB = MC.

• Inventory Types

  • Most manufacturing organizations usually divide their inventory into raw materials, work in process, finished goods, and goods for sales.
  • Most manufacturing organizations usually divide their inventory into raw materials, work in process, finished goods, and goods for sales.
  • A good only partially completed during the manufacturing process is called "work in process. " When the good is completed as to manufacturing but not yet sold or distributed to the end-user, it is called a "finished good. "
  • Finished goods: Goods ready for sale to customers.
  • Finished goods is a relative term.

• Economics as a Study of the Allocation of Scarce Resources

  • What goods and services should be produced?
  • Since not everything can be produced, some goods must be sacrificed for other goods.
  • There are often different ways to produce a good.
  • The amount of the good to be produced may influence the ways in which a good is produced
  • The distribution of goods among the members of society may also influence the ways in which different goods are valued.

• Unsought Products

  • Life insurance is an example of a good that is often seen as a sought good because awareness of its benefits has grown.
  • Unsought Goods are goods that the consumer does not know about or does not normally think of buying.
  • Once the consumer is well-educated about the product, the good goes on to become a sought good.
  • Even though it is a classic example of an unsought good, it is quickly growing into a sought good.
  • This was to prevent the good from becoming an unsought good.

• Importing

  • Imports are the inflow of goods and services into a country's market for consumption.
  • It is a good that is brought in from another country for sale.
  • Imported goods or services are provided to domestic consumers by foreign producers.
  • While imports are the set of goods and services imported, "imports" also means the economic value of all goods and services that are imported.
  • Comparative advantage is the concept that a country should specialize in the production and export of those goods and services that it can produce more efficiently than other goods and services, and that it should import those goods and services in which it has a comparative disadvantage.

• Cost of Goods Sold and Gross Profit

  • Cost of goods sold refers to the inventory costs of the goods a business has sold during a particular period.
  • Costs of goods made by the business include material, labor, and allocated overhead.
  • Many businesses sell goods that they have bought or produced.
  • When the goods are bought or produced, the costs associated with such goods are capitalized as part of inventory (or stock) of goods.
  • Explain the difference between cost of goods sold and gross profit

• Marketing Classes of Products

  • Products can be classified based on consumer versus industrial goods and goods versus services.
  • The two most commonly used methods of classifying products are: (1) Consumer goods versus industrial goods, and (2) goods products (i.e., durables and non-durables) versus service products.
  • The traditional classification of products is to dichotomize all products as being either consumer goods or industrial goods.
  • A classification long used in marketing separates products targeted at consumers into three groups: (1) Convenience goods, (2) shopping goods and (3) specialty goods.
  • The demand for manufactured industrial goods are usually derived from the demand for ultimate consumer goods.