Which of the following describes rival goods?

Rival goods are defined by the characteristic that one individual's consumption of a good diminishes the ability of another individual to consume that same good. This means that when one person utilizes or consumes a rival good, there is less of that good available for others to use.

For example, if one person eats an apple, that specific apple cannot be eaten by someone else; thus, the consumption of the apple by one individual directly affects its availability to others. This concept is crucial in understanding how resources are allocated and managed in economics, particularly in discussions about public goods and resource scarcity.

The other options do not accurately capture the concept of rival goods. Perfectly substitutable goods refer to products that can replace each other without any loss of utility, while goods provided free of cost may include public goods, which are non-rivalrous and non-excludable. Lastly, goods that do not compete in the market may refer to goods that are not substitutes but do not characterize the nature of rivalry in consumption.