The free-rider problem for a public good means that
A) a private market would provide less than the efficient amount of the good.
B) a private market would provide more than the efficient amount of the good.
C) the good is rival.
D) the good is excludable.
E) a private market would provide the efficient amount of the good.

Question

Quizplus · Accepted Answer

The free-rider problem occurs when individuals can benefit from a public good without paying for it. As a result, they have no incentive to contribute to the provision of the good, and the market would provide less than the efficient amount of the good.

The Free-Rider Problem for a Public Good Means That