Free Riding Is a Problem with Public Goods but Not

question 39

Multiple Choice

Free riding is a problem with public goods but not with private goods because for the private good:

• A)the good is a rival good.
• B)the marginal cost of production is greater than zero.
• C)the good is an excludable good.
• D)the good is free.

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Definitions:

Span Of Time

Span of time refers to the duration or length of a period between two points in time.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events happening in a fixed interval of time or space, assuming these events happen with a known constant rate and independently of the time since the last event.

Probability Of Occurrence

The likelihood of an event happening, measured on a scale from 0 (impossibility) to 1 (certainty).

Span Of Time

The duration or extent between two points in time.