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Sagot :
Answer: the market demand for a public good is nonexistent or understated.
Explanation:
The free-rider problem refers to a form of market failure which takes place when the people who benefit from the public goods do not pay for them or underpay for the goods and despite this, they continue to use it.
Because of the free-rider problem, the market demand for a public good is nonexistent or understated.
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