The Free-Rider Problem for a Public Good Means That

question 90

Multiple Choice

The free-rider problem for a public good means that

• A) a private market would provide less than the efficient amount of the good.
• B) a private market would provide more than the efficient amount of the good.
• C) the good is rival.
• D) the good is excludable.
• E) a private market would provide the efficient amount of the good.

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Definitions:

Average Product

The output per unit of input, calculated by dividing total output by the total amount of input used.

Short-Run

A period during which at least one input, typically capital, is fixed, influencing the flexibility of businesses to adjust to market changes.

Marginal-Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good varies as the quantity of production changes.

Additive Manufacturing

A method that involves building items by depositing material in successive layers, widely referred to as 3D printing.