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Anisa Symoné
on Oct 26, 2024

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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.
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JA
Jennifer AlexaNov 01, 2024
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