Rural/Metro-a private,subscription-based fire protection and emergency service provider-was founded by Lou Witzeman in 1948.Witzeman lived in an unincorporated suburb of Phoenix that did not provide fire-fighting services.Witzeman canvassed his neighbors and found that nearly all of them promised to pay him $10/year to provide fire protection.After investing his last $900 in a truck and firefighting equipment,most of his neighbors refused to pay him.This is an example of a ________.

Question

Quizplus · Accepted Answer

This situation illustrates the free-rider problem, as many of Witzeman's neighbors enjoyed the benefits of fire protection without paying for it, leaving him with the burden of the costs.

Rural/Metro-A Private,subscription-Based Fire Protection and Emergency Service Provider-Was Founded by Lou