The Free Rider Problem Refers to a Situation in Which

question 11

Multiple Choice

The free rider problem refers to a situation in which

• A) people consume a pure public good without payment, even though the good may not be produced if no one chooses to pay.
• B) the marginal cost of allowing additional consumers to consume a public good is zero.
• C) high income individuals subsidise the production of goods, such as education, that make society better off.
• D) markets fail to allocate resources efficiently when benefits outweigh costs.

---

Definitions:

Internal Dialogue

The ongoing conversation that occurs within an individual's mind, influencing perceptions, beliefs, and decisions.

Stakeholder Image

The perception or impression that stakeholders have of a company or brand.

Internal Branding

The process of building a brand's values and culture among the company's employees to ensure brand consistency.

Brand Consistency

The practice of maintaining uniformity in the brand's message, values, and visual elements across all marketing channels to reinforce brand identity.