Question

Mosquito control is typically provided by the government and not competitive markets because

a. a lot of people free ride then mosquito control would be underprovided by the market.
b. a lot of people free ride then mosquito control would be overprovided by the market.
c. only those who really need mosquito control buy it, the market would overproduce mosquito control.
d. the market is likely to produce the optimal amount of mosquito control

Answer 1

Mosquito control is typically provided by the government and not competitive markets because a lot of people free ride then mosquito control would be underprovided by the market. Option a

Step-by-step explanation:

Mosquito control is typically provided by the government and not competitive markets because a lot of people free ride then mosquito control would be underprovided by the market. The correct answer is a. a lot of people free ride then mosquito control would be underprovided by the market.

When it comes to public goods like mosquito control, individuals have an incentive to free ride, which means they can benefit from the service without having to pay for it. In a competitive market, this would lead to underproduction of mosquito control because firms would be unable to recover their costs. Option a