Asked by
LaTonya Lewis-Tunsil
on Oct 26, 2024Verified
When a good is nonexcludable:
A) consumers will pay the market price for it.
B) producers will produce too much of it.
C) a free-rider problem can arise.
D) production will be efficient.
Nonexcludable
A characteristic of public goods where it is not possible to prevent individuals from using the good or service, regardless of whether they have paid for it.
Free-rider Problem
A situation in which some individuals benefit from resources or services without paying for them, leading to underprovision of those goods or services.
- Recognize the characteristics and implications of nonexcludable goods, including the free-rider problem.
Verified Answer
MM
Learning Objectives
- Recognize the characteristics and implications of nonexcludable goods, including the free-rider problem.
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