Because of the free-rider problem:

A) the market demand for a public good is overstated.
B) the market demand for a public good is nonexistent or understated.
C) government has increasingly yielded to the private sector in producing public goods.
D) public goods often create serious negative externalities.

Free-Rider Problem

The inability of potential providers of an economically desirable good or service to obtain payment from those who benefit, because of nonexcludability.

Public Good

An item or service that is available for all individuals to consume, regardless of who pays for it, characterized by its non-excludability and non-rivalry.

Market Demand

The overall amount of a product or service that every consumer in a market is ready and capable of buying at different price levels.