Getting to know the different types of business goods is important to us, and you do not need to be an economist to be able to do just that. You see, if you are planning to establish a business, you must be able to understand the basics of it and the types of business goods are the most basic information that you must be able to understand.
Private types of business goods are those that bring about positive things to people. There are many different kinds of private types of business goods. They are known to be able to bring to their owners a private property tag as well. This only means that these types of business goods cannot be consumed by other people. Economics wise, these types of business goods are known to be scarce and hence competition is surely present for them. More competition will mean that there are many who demand for the goods. When there are many who demand for certain goods, it only means that their price can be made high. Examples of private types of business goods include cars, food, clothes, and other personal things.
Club types of business goods are the ones that are exclusively owned by people but are known to be non rivalrous. These are the goods that are known to be provided by natural monopoly too. Unlike the private goods that are known and considered to be scarce, these club goods are known to be artificially scarce. This only means that even when there are available production capacity and technology for them, they are not made available wide to people. Examples of these types of business goods include cinemas, satellite TV, and the like.
Common types of business goods are the ones that are known to be both non excludable and rivalrous. A good example of common goods will be the fishes in the sea. You see, you can fish all you want so you will have food to eat. But then again, if you do this, the fishes for the fishermen will be lessened. When this happens, there might be scarcity of these fishes as you cannot catch the same fish twice. Examples of these include fishes, coal, timber, and the like.
The public goods, lastly, are the goods that are both non rivalrous and non excludable. This only means that these are goods that people cannot be asked to not consume. They are goods that do not reduce their availability as well. This, however, does not means that these goods cannot be compromised. Take for example fresh air. Everyone can surely get unlimited amounts of fresh air, right? However, when pollution comes rushing in, the air gets compromised and people can get sick because of them. The main problem seen in public goods is called the free riders. These are people who do not pay for these goods, continually benefit from them, and are still the ones who destroy them. Examples of public goods include local TV, national defense, and of course air.