When a good is nonexcludable, then individuals
A)will purchase the good for less than it cost to produce.
B)can obtain the benefits of the good without paying for it.
C)have an incentive to become free riders.
D)will purchase more than the optimum amount.
E)b and c

Question

Quizplus · Accepted Answer

Nonexcludable goods allow individuals to benefit without paying, leading to free-rider problems, as individuals have an incentive to avoid paying if they can still benefit.

When a Good Is Nonexcludable, Then Individuals