Asked by
Illiya Manna
on Oct 26, 2024
Verified
If the extent to which common resources (such as fish in the sea) should be used is left to the private market:
A) resource use will be efficient and will maximize social welfare.
B) each individual will use the resource until his or her marginal benefit is equal to the marginal social cost.
C) the marginal social cost and each individual's marginal private cost will be the same.
D) the marginal social cost will be greater than the marginal private cost,and the resource will be overused.
Common Resources
Refers to goods that are non-excludable and rival in consumption, such as fish stocks in the ocean or public parks, where usage by one person reduces availability for others.
Marginal Social Cost
The cost to society of producing one additional unit of a good or service.
- Analyze the implications of overutilization and underutilization of public resources on social prosperity.
Verified Answer
KK
Learning Objectives
- Analyze the implications of overutilization and underutilization of public resources on social prosperity.