Private markets will NOT provide the efficient quantity of a public good because
A) of the principle of minimum differentiation.
B) public goods are rival and excludable.
C) of rational ignorance.
D) of the free-rider problem.

Question

Quizplus · Accepted Answer

The free-rider problem occurs because individuals can benefit from a public good without paying for it, leading to under-provision by private markets.

Private Markets Will NOT Provide the Efficient Quantity of a Public