The difference between the marginal social cost and the private cost of a common property resource represents:
A) the social discount rate.
B) a deadweight loss.
C) is generally negative because the people who use the resources assign higher value to them than other members of society.
D) the opportunity cost of reducing the resource by one unit for other members of society.

Question

Quizplus · Accepted Answer

The difference between the marginal social cost and the private cost of a common property resource represents the opportunity cost of reducing the resource by one unit for other members of society, as it reflects the external costs not accounted for by the individual user.

The Difference Between the Marginal Social Cost and the Private