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)benefits that accrue to providers of the product.
D)market power.

Question

Quizplus · Accepted Answer

The free-rider problem occurs when benefits accrue to individuals who have not paid for the good or service, leading to under-provision of that good or service since providers cannot easily charge beneficiaries.

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