In the case of broadcast, antenna television, the ______ problem is partly overcome through the use of advertising.
A) free rider problem
B) revenue stream problem
C) liquidity problem
D) accessibility problem

Question

Quizplus · Accepted Answer

The free rider problem occurs when people enjoy the benefits of a public good without contributing to its provision. In the case of broadcast, antenna television, the signals are freely available to anyone with a suitable device for reception. This means that people can access the content without paying for it or contributing to its production. However, broadcasters partially overcome this problem by using advertising as a way to generate revenue from their audiences. Advertisers pay for access to the broadcaster's audience, allowing the broadcaster to finance the production and distribution of their content. Therefore, the use of advertising helps to address the free rider problem associated with broadcast, antenna television.

In the Case of Broadcast, Antenna Television, the ______ Problem