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19 Dec 2021
Problem 15
Page 316
Section: REVIEW QUESTIONS
Chapter 13: Positive Externalities and Public Goods
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19 Dec 2021
Introduction
The free-rider problem refers to the strain placed on a public utility as a result of people who can't afford a fair proportion or don't contribute anything either.
The problem of free riders can exist in every society, regardless of its size. A municipal government in an urbanized area can discuss whether and how to compel outlying commuting to participate in the maintenance of the area's streets and walkways, as well as the security of its police and fire departments. A community broadcasting or transmission channel dedicates frequency to campaigning in the expectation of enticing non-contributing customers to donate.
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