Because of the free-rider problem,

A) the market demand for a public good is overstated.
B) the market demand for a public good is nonexistent or understated.
C) government has increasingly yielded to the private sector in producing public goods.
D) public goods often create serious negative externalities.

Free-rider Problem

A situation in which individuals or entities benefit from resources, goods, or services without paying for them, leading to underprovision of those goods.

Public Good

A product or service that is available for all to consume, regardless of who pays for it, characterized by non-excludability and non-rivalry.