Answer:
2. A large group with very diffuse possible benefits
Explanation:
the free-rider problem mostly applies to public goods that is goods or resources shared by a group of people. This problem is created when a burden arises from individuals sharing and using public resources who do not pay for them or sometimes underpays for it's usage . This problem could arise from small or large groups but would be most severe with large groups as these resources face heavier usage with large groups
The Free-rider problem be most severe for the people of large group with very diffuse possible benefits. Hence, the option 2 is correct.
The Free-rider problem is related to the social welfare programs, the problem arises when resources are limited and group of people who use them more than the other, which result in to hardship in maintaing equilibrium between the resources and the group.
It usually creates less problem in a small group, but when the group is bigger it creates severe challenge. Hence, the option 2 which says " A large group with very diffuse possible benefits" is correct.
Learn more about Free-rider problem here:
https://brainly.com/question/25800077
