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Public goods are always provided by the government because private firms cannot profit from them.
The free rider problem can lead to underproduction of public goods in a free market.
Public goods are non-rivalrous, meaning one person's consumption does not reduce the amount available for others.
Individuals are incentivized to contribute to public goods because they can benefit from them without paying.
The free rider problem is primarily a concern for goods that are both excludable and rivalrous.
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Public Goods and Free Rider Problem
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