Because of the free-rider problem,
A) competitive markets will tend to undersupply public goods.
B) the federal government spends too much on national defense.
C) fireworks displays have become increasingly dangerous.
D) poverty has increased.

Question

Quizplus · Accepted Answer

Competitive markets tend to undersupply public goods because individuals can benefit from them without paying, leading to the free-rider problem.

Because of the Free-Rider Problem