When the free-rider problem occurs in a market for a good, what is true of the quantity of the good supplied relative to the efficient quantity of the good?

A. The good is typically oversupplied in a market where the free-rider problem occurs.
B. When the free-rider problem occurs, the good can be provided completely free of charge.
C. The good is typically undersupplied in a market where the free-rider problem occurs.
D. The good is typically efficiently supplied in a market where the free-rider problem occurs.


Answer: C

Economics

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Economics