A common solution to the free-rider problem is choose one or more:

a. for government to subsidize consumption of the good.

b. to use the coase theorem to determine who has the property rights to the good in question.

c. for government to provide the good and then pay for its production through taxation.

d. for government to provide vouchers to consumers of the good.

Question

Karlie Todd

Business

2 October, 14:13

A common solution to the free-rider problem is choose one or more:

a. for government to subsidize consumption of the good.

b. to use the coase theorem to determine who has the property rights to the good in question.

c. for government to provide the good and then pay for its production through taxation.

d. for government to provide vouchers to consumers of the good.

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Answers (1)

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Cara · Answer 1

For government to provide the good and then pay for its production through taxation. Taxation tries to treat everyone who benifits as one consumer and then divide the cost equally. The military is an example of this!