If left to the private market, the amount of fire protection provided in a city would be ________ than it is now, and free riders would pay ________ for fire protection.
Answers
Answer:
Answer:
the correct answer for the first and second blanks are,
decreased and more, respectively
To make more sense,
it would be that if it was in the hands of the private firms they would decrease this facility of fire protection, why? because their aim is to make profit and maximize their profits so what would they get out of giving this service for free or to give this service in the existing quantity, i.e. amount.
Simiarly the free riders, who wouldnt have to pay to the government for this service previously or had to pay less, they would have to pay more now because the supply would get concentrated and services prices would rise and demand wouldn't change it would be constant,
Answer:
If let to the private market, the amount of fire protection provided in a city would be lower than it is now, and free riders would pay nothing for fire protection.
Hence, the right options that is to be filled in the blanks are lower and nothing. Here rest of the options are eliminated. you can further discuss it with your friends.