Teenabrasher Teenabrasher

23-03-2015
Social Studies

Answered

What is the relationship between market failure and free rider ?

Answer :

Since3122015 Since3122015

24-03-2015

Free riders cause market failure. When not everyone contributes to taxes or takes more than their fair share (such as through welfare or other public programs), the market is led to failure from having to cover the deficit created by that non-contribution or loss of product.

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