Which of the Following Is an Example of the Free-Rider

question 5

Multiple Choice

Which of the following is an example of the free-rider problem?

• A) John attends a lecture on investing in high-tech companies for which he paid $100 to hear.
• B) Tom watches Mystery on his local PBS television station, but Tom does not contribute anything to PBS.
• C) Sarah works overtime while her co-workers opt for a traditional schedule.
• D) Jethro buys a skunk-hunting permit that he refuses to share with his sister.
• E) Katie catches a swordfish in the ocean.

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Definitions:

Sales Forecast

An estimate of the sales volumes, and often revenues, that a company expects to achieve within a specific period.

Unit Sales

The total number of individual items sold in a given period.

Value-Based Pricing

A pricing strategy where the price of a product or service is determined primarily by the perceived value to the customer rather than the cost of production.

Useful Life

The expected period of time during which an asset is useful to the owner for the purpose for which it was acquired, often impacting depreciation calculations.