1 0. When it is costly or impossible to withhold a public good from persons who will...
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1 0. When it is costly or impossible to withhold a public good from persons who will not help pay for it, the market system breaks down because everyone has an incentive to become a free rider. When everyone attempts to ride free, units of the good will not be produced even though the social value of such goods might far exceed their cost.
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Related Book For
Economics Private And Public Choice
ISBN: 9780123110404
2nd Edition
Authors: James D Gwartney; Richard Stroup; A H Studenmund
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