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LaTonya Lewis-Tunsil
on Oct 26, 2024

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When a good is nonexcludable:

A) consumers will pay the market price for it.
B) producers will produce too much of it.
C) a free-rider problem can arise.
D) production will be efficient.

Nonexcludable

A characteristic of public goods where it is not possible to prevent individuals from using the good or service, regardless of whether they have paid for it.

Free-rider Problem

A situation in which some individuals benefit from resources or services without paying for them, leading to underprovision of those goods or services.

  • Recognize the characteristics and implications of nonexcludable goods, including the free-rider problem.
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Megan MartellOct 28, 2024
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