Which of the following characteristics defines private goods?

Private goods are characterized by their excludability and rivalry. Excludability means that the provider of the good can prevent others from using it unless they pay for it, which allows businesses to maintain profit margins and incentivizes production. Rivalry indicates that one person's consumption of the good reduces the availability of that good for others; for example, if one person buys a sandwich, there is one less sandwich available for others.

This distinction is important because it impacts how goods are consumed, allocated, and priced in a market. When private goods are produced, the market operates efficiently since consumers compete for them based on their preferences and willingness to pay. Understanding these characteristics helps to differentiate private goods from public goods, which are typically non-excludable and non-rivalrous, meaning they can be consumed by multiple individuals simultaneously without reducing availability.