enter image description here Hello, I'd like to know why c) is false here because based on my understanding it is also correct...


1 Answer 1


Free riding requires non-excludability. This good is just non-rivalrous and on exam you should generally not make up further assumptions other than those provided. If a good is non-rivalrous but excludable there is no free riding problem. Any potential free rider can be excluded by the firm.

For example, an empty seat in half empty theater is in essence non-rivalous (if we know for sure the theater is never full). However, theater owner controls access to the theater so there is no possibility for people to freeride since everyone has to buy ticket to enter.

  • $\begingroup$ Indeed, I shouldn't assume. Thank you very much! $\endgroup$
    – Inès
    Commented Aug 22, 2023 at 11:48
  • $\begingroup$ @Inès you are welcome if my answer answered your Q consider accepting it $\endgroup$
    – 1muflon1
    Commented Aug 22, 2023 at 13:48

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