Question

Because of the free-rider problem, Group of answer choices the market demand for a public good is nonexistent or understated. public goods often create serious negative externalities the market demand for a public good is overstated. government has increasingly yielded to the private sector in producing public goods.

Answer 1

Answer: the market demand for a public good is nonexistent or understated.

Explanation:

The free-rider problem refers to a form of market failure which takes place when the people who benefit from the public goods do not pay for them or underpay for the goods and despite this, they continue to use it.

Because of the free-rider problem, the market demand for a public good is nonexistent or understated.