Since the cost of using more of any resource is ________, viewing any resource's price as zero leads to ________.
A)positive; underutilization
B)negative; overutilization
C)positive; a surplus
D)positive; overutilization

Question

Quizplus · Accepted Answer

The cost of using any natural resource is positive, so viewing the resource's price as zero implies that the resource will be overused relative to the social optimum.

Since the Cost of Using More of Any Resource Is