Market failure associated with the free-rider problem is a result of
A)a problem associated with pollution.
B)benefits that accrue to those who don't pay.
C)losses that accrue to providers of the product.
D)market power.

Question

Quizplus · Accepted Answer

The free-rider problem occurs when individuals or groups are able to benefit from a public good without contributing to its cost. This can result in market failure because the providers of the good or service may not be able to cover their costs or make a profit, leading to underproduction of the public good.

Market Failure Associated with the Free-Rider Problem Is a Result