The Free-Rider Problem Described by the Text Refers to the Reluctance

question 209

Multiple Choice

The free-rider problem described by the text refers to the reluctance of people to

• A) support policies and programs whose benefits will be enjoyed by everybody.
• B) join an interest group if the policy that group supports benefits everybody.
• C) support policies and programs whose costs will be shared by everybody.
• D) join an interest group if the policy that group supports benefits a narrow constituency.
• E) join an interest group if there are no costs and a low level of perceptible benefits.

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Definitions:

Shipping Costs

Expenses associated with the transportation of goods from one location to another, often influencing pricing and supply chain decisions.

Fuel

Substances used to produce energy, especially to power engines, heating, or produce electricity.

Average Total Cost

The average expense for each unit of output, calculated by dividing the overall production cost by the total number of units produced.

Average Fixed Cost

The cost that remains constant per unit of output as total production increases or decreases.