Answered: Why would club goods not have a free…

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Economics

Why would club goods not have a free rider problem?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Why would club goods not have a free rider problem?

Expert Solution

Step 1

Club goods are the one that holds some of the features of public good such that it is non-rivalrous as the consumption by one person does not reduce the availability of the same for others, but to a some extent.

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