Author Question: One way to avoid the free rider problem is A) through mandates. B) for the government to provide ... (Read 65 times)

lracut11 · **on:** Jul 1, 2018

One way to avoid the free rider problem is

A) through mandates.
B) for the government to provide the good or service.
C) to use social pressure.
D) All of the above.

Question 2

Briefly describe the conditions under which cartels will be formed.

What will be an ideal response?

nicoleclaire22 · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

D

Answer to Question 2

An industry with relatively few firms selling identical or very similar products, where entry is very difficult and cost structures are very similar. Also, geographic proximity of the firms is very helpful.