The free-rider problem applies
A) to rival and excludable goods.
B) to common resources.
C) to nonrival and nonexcludable goods.
D) when marginal social benefit exceeds marginal private benefit.
E) when marginal social cost equals marginal private cost.

Question

Quizplus · Accepted Answer

The free-rider problem occurs with nonrival and nonexcludable goods, such as public goods, where individuals can benefit without paying for them, leading to under-provision of these goods.

The Free-Rider Problem Applies