Question

Daleview has a cable television service provider. Non-subscribers are not permitted a ’free-ride.’ This means that the service provider: A. helps subscribers access channels. B. helps non-subscribers access channels. C. bans viewing by non-subscribers. forces non-subscribers to subscribe. D. operates in the same fashion as the regular network stations that gain their revenue through the sale of advertising time on the air.

Answer 1

Answer:

The correct answer is letter "C": bans viewing by non-subscribers.

Explanation:

In economics, the free-rider problem arises when individuals refuse to pay their fair share or pay less for something others are paying. This situation occurs when individuals can consume a given resource without limits and when there is regulation over the resource consumption.

Thus, Daleview is avoiding the free-rider problem in its TV cable service by setting bans to non-subscribers accounts.