A Free-Rider Problem Exists If

Multiple Choice

A free-rider problem exists if

A) those consuming the good pay more than the cost of providing the good so that the producer's profits increase ("free ride") as a result of the overpayment.
B) those consuming the good pay nothing for it.
C) two consumers can jointly consume a good, which lowers the price per person.
D) a firm can obtain technology at a fair price.