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Concertville is hosting a series of outdoor concerts in the park. The concert series will cost the city $1,250 to host. City officials expect the concert series to draw a crowd of 250 people, 50 of whom will free ride. Based on this information, how much should city officials charge for the concert series in order to cover the $1,250 expense

Respuesta :

The amount the city officials should charge for the concert series is $6.25.

What is the free rider problem?

The free rider problem is a form of market failure that occurs when people benefit from a good or service but do not pay to enjoy the service.

The amount to be charged = expense / people who do not free ride

1250 / (250 - 50) = $6.25

To learn more about free riders, please check: https://brainly.com/question/6968258

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