What results when a good is not excludable
A)The good will be produced as a private good but not as a public good.
B)The good will not be produced since no one values it.
C)The free-rider problem prevents the private market from supplying the good.
D)Everyone can have all they want and the good will have a price of zero.

Question

Quizplus · Accepted Answer

The free-rider problem occurs when individuals can benefit from a good without paying for it, thus reducing the incentive for producers to supply the good. In this case, since the good is not excludable, it is difficult or impossible to prevent individuals from accessing the good without paying. This creates a market failure, and the private market may not be able to supply the good efficiently. Thus, the free-rider problem prevents the private market from supplying the good.

What Results When a Good Is Not Excludable