Question

The free rider problem is a situation in which A. one agent secures benefits that others pay for B. all of the above. C. none of the above. D. there are excessive subsidies given to polluting buses or other forms of mass transit E. Effluents such as CFCs combine with ozone and decrease concentrations of that protective chemical F. perfect property rights exits

Answer 1

b). one agent secures benefits that others pay for.

Step-by-step explanation:

The free-rider problem is described as the problem when some individuals consume or take the benefit of a resource without paying for it. in this problem, one agent is being benefitted from the resources that the others are paying for. This creates a load on a shared resource and eventually causes market failure. In order to cope with this problem, the organizations must ensure a fair distribution of resources and their benefits as per the payment made by the agents. Therefore, option B is the correct answer.