A free-rider problem exists if A) those consuming the good pay ...

[stock]

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.

Question 2

The profit maximizing condition for a firm in monopolistic competition is to produce so that
 
  A) marginal cost equals marginal revenue.
  B) marginal cost equals price.
  C) average total cost equals price.
  D) price equals marginal revenue.

[juiceman1987]

Answer to Question 1

B

Answer to Question 2

A