When the Free-Rider Problem Exists

question 64

Multiple Choice

When the free-rider problem exists,

• A) the market will devote too few resources to the production of the good.
• B) the cost of the good will always be more than the benefit of the good.
• C) the good will not be produced.
• D) entrepreneurs will eventually find a way to make free-riders pay their share.

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Definitions:

Improvising

The art of creating and performing spontaneously or without preparation.

Continual Adjustments

An ongoing process of making small changes or modifications to improve or maintain performance in response to changing conditions or feedback.

Unfreezing

The process within change management that involves overcoming inertia and dismantling the existing "mindset" to overcome resistance to change.

Changing

The process or act of making something different, often in the context of improvement or adaptation.