9. When goods are nonexcludable, there is a free-rider problem: consumers will not pay for the good,
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9. When goods are nonexcludable, there is a free-rider problem: consumers will not pay for the good, leading to inefficiently low production. When goods are nonrival in consumption, they should be free, and any positive price leads to inefficiently low consumption.
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Related Book For
Essentials Of Economics
ISBN: 9781429218290
2nd Edition
Authors: Paul Krugman, Robin Wells, Kathryn Graddy
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