Because of the free-rider problem
A) there is an efficient allocation of resources for common resources.
B) private provision leads to the production of more than the efficient quantity of a public good.
C) private provision leads to the production of less than the efficient quantity of a public good.
D) the public uses too little of a common resource.

Question

Quizplus · Accepted Answer

The free-rider problem occurs when individuals can benefit from a public good without contributing to its cost, leading to underproduction of the good since private entities have less incentive to provide it.

Because of the Free-Rider Problem