When the free rider problem is present in a market: what people pay for a good is often less than the real value they place on it. the good will likely be overconsumed. the good is rival in consumption.
A)I only
B)I and II only
C)II and III only
D)I and III only

Question

Quizplus · Accepted Answer

The free rider problem typically occurs with non-rivalrous and non-excludable goods, where individuals can benefit from the good without directly paying for it, leading to under-provision of the good rather than overconsumption. This means that what people pay is often less than the value they place on it, but it does not imply the good is rival in consumption or that it will be overconsumed.

When the Free Rider Problem Is Present in a Market