2. Public goods a. Expose the main differences between private goods and pure public goods. b. What is meant by meritori

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2. Public goods
a. Expose the main differences between private goods and pure
public goods.
b. What is meant by meritorious assets?
c. Consider two consumers who have two goods, X1 and X2.
Assuming, first, that the two goods are private, write the
conditions that must be met to reach the optimum, and interpret
them. If, then, good X2 is assumed to be a public good, write down
the conditions that must be met to reach the optimum, and interpret
them.
d. Discuss the following statement: “Private goods are rival in
consumption, and market demand is the horizontal sum of individual
demand curves. Public goods are not subject to rivalry in
consumption, and collective demand is the vertical sum of
individual demands.