A nonprofit advocacy group seeks to block an expensive subsidy to what it believes is an environmentally destructive project. What accurately depicts the Free-Rider Problem in the scenario?

The public can expect to reap the benefits of blocking the subsidy without making

any contribution to the nonprofit group.

Explanation:

A free rider problem occurs when the beneficiaries of a resource, public good, or service do not not pay for it or they make underpayment.

They continue to have access to the service even with no payment. It will eventually lead to market failure.

In the given scenario the nonprofit advocacy group seeks to block an expensive subsidy to what it believes is an environmentally destructive project.

The free rider problem in this case will occur when the public benefits from the action of the nonprofit group but does not make any contribution to it.

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