The reason individual homeowners usually do not hire a private contractor to fill the potholes on their street is because:

Question

Quizplus · Accepted Answer

Hiring a private contractor to fill the potholes on their street would be a private good that only benefits the individual homeowner. Others who use the street would benefit from the repair but would not pay for it, leading to free riding. This creates a negative externality, making it unlikely that individual homeowners will hire a private contractor.

The Reason Individual Homeowners Usually Do Not Hire a Private