A free-rider problem exists when a good that has the following characteristic?

A) Rivalry in consumption.
B) Elastic demand.
C) Inelastic demand.
D) Nonexcludable.

Free-rider Problem

A situation where individuals benefit from resources, goods, or services that they do not pay for, which can lead to underproduction or depletion of those resources.

Rivalry

The competitive relationship between firms in the market, striving to gain advantage over each other in terms of sales, market share, or innovation.

Nonexcludable

A characteristic of a good or service whereby it is not possible to prevent people who have not paid for it from having access to it.