Michigan Radio is the state's most listened-to public radio service, attracting approximately 400,000 listeners each week and is funded through listener donations. If Michigan Radio suffers from the free-rider problem then the market would provide an ________ quantity of the public good.
A) efficiently small
B) efficiently large
C) inefficiently small
D) inefficiently large

Question

Quizplus · Accepted Answer

The free-rider problem occurs when individuals can benefit from a public good without contributing to its cost, leading to underfunding and an inefficiently small quantity of the good being provided.

Michigan Radio Is the State's Most Listened-To Public Radio Service