In the absence of government action, why would the private market probably NOT provide as much police protection as is socially desirable?
A) because the use of police services by one person will significantly reduce the police protection available to others
B) because the private benefits are greater than the private costs of providing police protection
C) because individuals are too poorly informed about the value of police protection
D) because it is difficult to prevent free riders from benefiting from some police protection services

Question

Quizplus · Accepted Answer

Private markets may not provide as much police protection as socially desirable because of the difficulty in preventing free-riders from benefiting from police protection services without paying for them. This creates a collective action problem, where individuals have an incentive to let others pay for the service while still benefiting from it themselves. Therefore, the market may not provide enough police protection to meet the optimal level required for social welfare.

In the Absence of Government Action, Why Would the Private