In a market economy,goods that are nonexcludable and nonrival will be produced at inefficiently low levels (if they are produced at all),and goods that are excludable but nonrival in consumption will be produced at inefficiently low consumption levels.

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This is known as the "free rider problem." Since nonexcludable goods can't be easily restricted to those who have paid for them, people have an incentive to not pay and still benefit from the good. This leads to underproduction of the good. Excludable goods, on the other hand, can be restricted to those who have paid, but if the good is nonrival (meaning one person's consumption of the good doesn't reduce its availability for others), people may underconsume it since the cost of the good may be higher than the additional benefit gained from consuming more of it.

In a Market Economy,goods That Are Nonexcludable and Nonrival Will