Consider a good for which the number of people who benefit from the good is large and the exclusion of any one those people is impossible. In this case, the market for this good will likely
A)be provided by a private firm rather than the government.
B)have a free-rider problem.
C)not exist.
D)be limited to a small number of units of production.

Question

Quizplus · Accepted Answer

A good with a large number of beneficiaries and impossibility of exclusion is considered a public good. Public goods typically have a free-rider problem, where individuals can benefit from the good without contributing to its production. This makes it difficult for private firms to provide the good efficiently and the government may need to intervene to ensure provision.

Consider a Good for Which the Number of People Who