Ask Question
29 March, 11:43

Sam was willing to contribute $20 this year to his local college radio station. However, after learning that the radio station had already met its goal of raising $400,000, he decides not to contribute, because he knows he can listen to it without contributing.

This is an example of which of the following?

a) A deadweight loss

b) A negative externality

c) An opportunity cost

d) The free-rider problem

+5
Answers (1)
  1. 29 March, 11:57
    0
    The correct answer is d) The free-rider problem.

    Explanation:

    This term refers to a problem in economics where a person who is known as a stowaway, benefits from using a service or consuming a product without paying anything for it. In this case Kevin should contribute to the radio station, since regardless of whether what was expected in a given period has been raised, just being committed is enough to have the obligation to contribute for the maintenance of the station over time.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Sam was willing to contribute $20 this year to his local college radio station. However, after learning that the radio station had already ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers