Asked by
Tashanna Grant-Bucknor
on Nov 17, 2024
Verified
Market failure associated with the free-rider problem is a result of
A) a problem associated with pollution.
B) benefits that accrue to those who don't pay.
C) benefits that accrue to providers of the product.
D) market power.
Free-rider Problem
A situation in which some individuals consume more than their fair share of a public resource, or shoulder less than a fair share of the costs of its production, without contributing to its provision.
Market Failure
A situation where the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.
Pollution
The introduction of harmful substances or products into the environment, leading to adverse effects on human health, ecosystems, or buildings.
- Gain insight into the principles of externalities and public goods, encompassing the challenge posed by free riders.
- Identify individuals who benefit from public goods and common resources without contributing to their provision and understand the consequences of such behavior.
Verified Answer
JM
Learning Objectives
- Gain insight into the principles of externalities and public goods, encompassing the challenge posed by free riders.
- Identify individuals who benefit from public goods and common resources without contributing to their provision and understand the consequences of such behavior.