Asked by
Monserrat Pintado
on Nov 25, 2024
Verified
The free-rider problem makes a good highly profitable for a private firm to provide.
Free-Rider Problem
The inability of potential providers of an economically desirable good or service to obtain payment from those who benefit, because of nonexcludability.
Highly Profitable
Describing a business or activity that generates a significantly higher amount of earnings compared to its costs.
Private Firm
A business owned by private individuals or entities, not traded publicly and not owned by the government.
- Identify and explain the free-rider problem and its impact on the provision of public goods.
Verified Answer
MC
Learning Objectives
- Identify and explain the free-rider problem and its impact on the provision of public goods.