One reason markets may fail to provide the optimal quantity of public goods is the problem of

Name: One reason markets may fail to provide the optimal quantity of public goods is the problem of
Brand: Quizplus
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Question

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The problem of free riders occurs when individuals can enjoy the benefits of a public good without contributing to its provision. This leads to underproduction of the public good as the private sector providers do not have an adequate incentive to produce the optimal quantity of the good.

One Reason Markets May Fail to Provide the Optimal Quantity