The free-rider problem occurs when people who do not pay for information take ad

Question

The free-rider problem

occurs when people who do not pay for information take advantage of the information other people have to pay for.

suggests that the private sale of information will only be a partial solution to the lemons problem.

prevents the private market from producing enough information to eliminate all the asymmetric information that leads to adverse selection.

All of these.

occurs when people who do not pay for information take advantage of the information other people have to pay for.

suggests that the private sale of information will only be a partial solution to the lemons problem.

prevents the private market from producing enough information to eliminate all the asymmetric information that leads to adverse selection.

All of these.

Explanation / Answer

The free-rider problem A occurs when people who do not pay for information take advantage of the information other people have to pay for. B suggests that the private sale of information will only be a partial solution to the lemons problem. C prevents the private market from producing enough information to eliminate all the asymmetric information that leads to adverse selection. D All of these. The free-rider problem occurs when those who take advantage from resources, public goods, or services do not pay for them, which results in an underprovision of those goods or services.

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