When a Free-Rider Problem Exists

question 437

Multiple Choice

When a 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.

---

Definitions:

Word-of-mouth Communications

Informal conversations consumers have about products, services, or brands, which can significantly influence perceptions and buying behaviors due to their personal and trustworthy nature.

CRM

Customer Relationship Management, a strategy for managing an organization's relationships and interactions with customers and potential customers.

Social Capital

Refers to the networks, relationships, and connections among people that can be economically valuable.

Disconnected Employee

A worker who feels a lack of connection or engagement with their workplace, colleagues, or the mission of their organization.