When a good is nonrival and nonexcludable, it suffers from the _____ problem.

Question

Quizplus · Accepted Answer

Nonrival and nonexcludable goods, sometimes referred to as public goods, are difficult to provide through the market because people have an incentive to free ride, or enjoy the benefits without paying their fair share. This problem is known as the free-rider problem. Cap and trade refers to a system to limit pollution, the Coase Theorem is a theory about private bargaining, and partial good is not a commonly used term in economics.

When a Good Is Nonrival and Nonexcludable, It Suffers from the _____