When a good is nonexcludable:
A) consumers will pay the market price for it.
B) producers will produce too much of it.
C) a free-rider problem will arise.
D) production will be efficient.

Question

Quizplus · Accepted Answer

When a good is nonexcludable, individuals cannot be prevented from using it, leading to the free-rider problem where people benefit without paying, reducing the incentive for producers to supply the good.

When a Good Is Nonexcludable