Free riding is a problem with public goods but not with private goods,because for the private good

Question

Quizplus · Accepted Answer

The best choice is C because a private good is excludable, meaning someone who doesn't pay for the good can be excluded from consuming it. Therefore, free riding is not an issue with private goods because individuals are forced to pay for the good before they can consume it. A is incorrect because a rival good is one in which consumption by one person reduces the amount of the good available to others. B is incorrect because the marginal cost of production being greater than zero is not relevant to the issue of free riding. D is incorrect because private goods are not free, as individuals must pay for them.

Free Riding Is a Problem with Public Goods but Not