Because national defense is potentially subject to free riding,a private sector market for national defense would lead to

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Quizplus · Accepted Answer

With free riding, individuals or firms can benefit from the national defense without contributing to its cost. This creates a market failure, and private firms would have no incentive to produce the efficient amount of national defense. Instead, they would produce less than the efficient amount to minimize their cost and maximize their profit. Therefore, less than the efficient amount of national defense would be produced if there is free riding.

Because National Defense Is Potentially Subject to Free Riding,a Private