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.

Examine international perspectives on electronic transactions and agency authority.

Understand the concepts of agency, principals, and the liability of principals for agents' actions.

Grasp the legal consequences of different types of principals (disclosed, partially disclosed, undisclosed).

Recognize the consequences of an agent's actions on the principal's liability, including in tort and contract scenarios.

---

Definitions:

Capacity

Capacity refers to the maximum amount of work that an organization is capable of completing in a given period, often determined by the limits of available resources, such as manpower, machinery, or physical space.

Patent Search

A thorough investigation conducted to check if an invention or idea has already been patented by someone else.

Existing Patents

Refers to patents that have already been granted by the patent office, protecting previous inventions or discoveries.

Inventions

Novel creations or innovations that result in new products, processes, or technologies, often protected by patents.