The free-rider problem arises when consumption of a good is
A) rival.
B) excludable.
C) nonrival but excludable.
D) nonexcludable.

Name: The free-rider problem arises when consumption of a good is A) rival. B) excludable. C) nonrival but excludable. D) nonexcludable.
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Question

Quizplus · Accepted Answer

The free-rider problem occurs when a good is nonexcludable, meaning people cannot be prevented from using it, leading to individuals benefiting without contributing to its cost.

The Free-Rider Problem Arises When Consumption of a Good Is