Practice mode Market

Broadcasting companies use satellite TV subscriptions and television detector devices to deal with which problem?

Correct answer A. Free rider

Explanation

Broadcast signals are hard to exclude people from, so viewers could watch without paying. Encrypted subscriptions and licence detection make non-payers excludable, tackling the free-rider problem.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.