When consumers don't have to pay for a common resource:
A)it is rational to overconsume.
B)it is irrational to overconsume.
C)it is rational to underconsume.
D)there is zero demand for the good.

Question

Quizplus · Accepted Answer

When consumers don't have to pay for a common resource, it becomes rational for them to overconsume because they do not bear the cost of their consumption directly. This can lead to what is known as the "tragedy of the commons," where individual users acting independently according to their own self-interest behave contrary to the common good of all users by depleting or spoiling the shared resource.

When Consumers Don't Have to Pay for a Common Resource