When a good is nonexcludable:
A)consumers will pay the market price for it.
B)producers will produce too much of it.
C)a free-rider problem can arise.
D)production will be efficient.

Question

Quizplus · Accepted Answer

Nonexcludable goods can be consumed by individuals who do not pay for them, which leads to a free-rider problem where some people consume the good without contributing to its production or cost. This can result in underproduction or underfunding of the good.

When a Good Is Nonexcludable