When the free rider problem is present in a market:
A)the good will be oversupplied.
B)the good will be underconsumed.
C)the good is rival in consumption.
D)the good is not excludable.

Question

Quizplus · Accepted Answer

The free rider problem occurs when a good is non-excludable, meaning people cannot be prevented from using it, leading to under-provision of the good as individuals have no incentive to pay for it.

When the Free Rider Problem Is Present in a Market