What does 'nonrival' mean in the context of goods?

In the context of goods, 'nonrival' refers to a characteristic of certain types of goods where consumption by one individual does not diminish the ability of another individual to consume the same good simultaneously. This means that more than one person can benefit from or use the same unit of the good at the same time without interfering with each other's consumption.

An example of a nonrival good is public broadcasting; if one person is watching a television show, it does not prevent others from also watching it at the same time. This is in contrast to a 'rival' good, where one person's consumption reduces the availability for others, such as a slice of pizza—only one person can eat that slice at any given time.

Understanding the concept of nonrival goods is vital when discussing public goods and externalities in microeconomics, as it highlights how certain goods can be shared without limits, impacting things like pricing, access, and government provision.