A Canada Day fireworks display
A)does not have a free-rider problem.
B)has a free-rider problem that cannot be eliminated.
C)has a free-rider problem that can be eliminated by using taxes paid by area residents to finance the display.
D)is a private good.
E)is a natural monopoly good.

Question

Quizplus · Accepted Answer

A Canada Day fireworks display is a public good, which typically has a free-rider problem because people can enjoy the display without paying for it. However, this problem can be mitigated by using taxes collected from area residents to fund the display, ensuring that everyone contributes to its cost.

A Canada Day Fireworks Display