Author Question: The free-rider problem plagues public goods because A) public goods are not produced by ... (Read 79 times)

2125004343 · **on:** Jun 29, 2018

The free-rider problem plagues public goods because

A) public goods are not produced by profit-maximizing firms and hence can be produced only at a loss to society.
B) once public goods are produced it is not possible to exclude anyone from consuming these goods.
C) the government can refuse to serve a citizen.
D) the public doesn't care about public goods.

Question 2

In the above figure, if this natural monopolist were unregulated, the profit maximizing firm would produce

A) at Q1 output rate.
B) at Q2 output rate.
C) at Q3 output rate.
D) past the Q3 output rate.