Asked by
Anisa Symoné
on Oct 26, 2024Verified
The free-rider problem is a direct result of:
A) the inability to exclude nonpayers.
B) marginal-cost pricing.
C) full-cost pricing.
D) horizontally summed supply curves.
Free-rider Problem
The free-rider problem occurs when individuals consume a good without paying for it, under the assumption that others will cover the cost, typically in the context of public goods.
Nonpayers
Individuals who benefit from goods, services, or resources without contributing to their production or cost, often in the context of public goods.
- Explain the free-rider problem and how it influences the provision of public goods.
Verified Answer
JA
Learning Objectives
- Explain the free-rider problem and how it influences the provision of public goods.