One difficulty in managing common property resources is that:
A) the monopoly firm that owns such a resource typically has great economic power, so that breaking it up into smaller firms is not practical.
B) the monopoly firm that owns such a resource typically is a natural monopoly, so that it is undesirable to break it up into smaller firms.
C) many common property resources are so small that management would have to be done on a micro level, greatly increasing government activity in the economy.
D) many common property resources are so vast that single ownership or management of them is not practical, especially if they cross international borders.
E) more and more of them come into being as pollution increases.

Question

Quizplus · Accepted Answer

Many common property resources, such as oceans, forests, and wildlife, are so vast that single ownership or management of them is not practical, especially if they cross international borders. This makes it difficult to establish clear and enforceable property rights, and leads to the tragedy of the commons where individuals exploit the resource for their own gain without regard for its long-term sustainability. This difficulty in managing common property resources is a classic example of a market failure that requires government intervention to address.

One Difficulty in Managing Common Property Resources Is That