Which of the following is not a consideration when attempting to eliminate a free rider problem?
A)The social costs must be realized by the individual.
B)Something must be done to alter individuals' trade-offs.
C)Market participants must internalize the value of the externality.
D)Firms must be forced to provide the good or service at a price that is below profit maximizing price.

Question

Quizplus · Accepted Answer

The free rider problem typically involves non-excludable public goods where individuals cannot be easily excluded from using the good, leading to under-provision of the good by the market. The correct approaches to address this issue involve making individuals realize the social costs (A), altering trade-offs to encourage contribution (B), and ensuring the value of the externality is internalized by market participants (C). Forcing firms to provide goods at below-profit maximizing prices (D) does not directly address the free rider problem and can lead to inefficiencies or reduced supply, making it not a consideration for eliminating the free rider problem.

Which of the Following Is Not a Consideration When Attempting