The free rider problem causes less than optimal production of a public good.

Name: The free rider problem causes less than optimal production of a public good.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The free rider problem occurs when individuals benefit from a public good without contributing to its production. This leads to an underproduction of the good because individuals have no incentive to pay for something they can obtain for free. Therefore, the production of the public good is less than optimal.

The Free Rider Problem Causes Less Than Optimal Production of a Public