Local governments, rather than private citizens, are typically the providers of large fireworks displays. This is because fireworks displays: suffer from the free rider problem. are non-excludable. are rival in consumption.
A)II only
B)I and II only
C)I and III only
D)I, II, and III

Question

Quizplus · Accepted Answer

Fireworks displays are non-excludable because it's difficult to prevent people from watching them if they are within sight, leading to the free rider problem where individuals can benefit from the good without paying for it. They are not rival in consumption because one person's enjoyment of the fireworks does not diminish another's ability to enjoy them as well.

Local Governments, Rather Than Private Citizens, Are Typically the Providers