Questions: Markets where the free-rider dilemma exists will produce output.

The answer is: less than optimal

Explanation: The free-rider dilemma occurs in markets where individuals can benefit from resources, goods, or services without paying for them, which leads to under-provision of those goods or services. This is particularly common in the case of public goods, where it is difficult to exclude non-payers from using the good. Because individuals have an incentive to free-ride, producers may not find it profitable to produce the good at the socially optimal level, resulting in less than optimal output.