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The type of problem that exists when people who can’t be excluded from using a good (product) choose not to pay for it is called a free-rider problem.

What is a free-rider problem?

A free-rider problem can be defined as a type of market failure and burden that typically occurs when people who benefit from public goods or shared resources refuse to pay for them.

This ultimately implies that, a free-rider problem is the type of problem that exists when people who can’t be excluded from using a good (product) choose not to pay for it.

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