Tom, mary and jill have apartments in the same building. a security system for their building costs $750. tom is willing to pay $100 for the security system, mary is willing to pay $300 and jill is willing to pay $300. they have a meeting to vote on whether to pay $250 each for the security system. at least two of them must vote for the system to be installed before the vote is passed. the efficient outcome is to have the security system installed. after the meeting the security system will which illustrates
be installed, the free rider problem
not be installed, the free rider problem
be installed, a negative externality
not be installed, a negative externality

The efficient outcome is to have the security system installed. After the meeting the security system will be installed, which illustrates the free rider problem.

Free rider is the burden on resource which is been shared, the problem is created by its usage or over-exploitation by individual who aren't paying their fair share.

∴ Here Tom is a free rider. i.e. He is willing to pay $100 where he should've paid $250.

the answer is either "loser" or "dumb*ss"

gods, i'm only joking, don't ban me.*

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.