A free-rider problem exists when a good that has the following characteristic?

A bakery producing bread reports the following production information:

# Workers Total Product (loaves of bread per hour) 0 0 1 35 2 65 3 85 4 100 5 110 The bread sells in a competitive market at a price of $0.30 each. The firm hires workers in a competitive labor market at a wage of $7 per hour. How many workers should the firm hire? Explain your answer.

Which of the following is not a reason why government officials are willing to impose entry barriers?

A) to increase economic efficiency B) to raise revenue C) to promote an equitable distribution of income D) to encourage innovation which may improve the standard of living in the long run