Every few months,public radio announces a call for pledge support.During this time,it asks listeners to contribute to their local public radio station.Although they raise money during this time,it often falls short of the amount they wish to raise because:
A) they do not make the pledge period long enough.
B) listeners know that they will be able to hear public radio,even if they don't contribute.
C) public radio free-rides on the listeners.
D) the marginal social cost equals the marginal social benefit of public radio listening.

Question

Quizplus · Accepted Answer

This is because public radio is a public good, which means that once it is provided, everyone can benefit from it, regardless of whether they contribute financially or not. This creates a free-rider problem, which can lead to people choosing not to contribute because they know they can still access the station.

Every Few Months,public Radio Announces a Call for Pledge Support