Since the cost of obtaining more of any resource is __________,viewing any resource's price as zero leads to __________.
A) positive;underutilization
B) negative;overutilization
C) zero;an efficient allocation
D) positive;overutilization
E) positive;a surplus

Question

Quizplus · Accepted Answer

The cost of obtaining more of any resource is positive. When a resource's price is viewed as zero, there will be no incentive to conserve or allocate the resource efficiently. This can lead to overutilization or wasteful use of the resource. Therefore, the best choice is D - positive cost of obtaining more of any resource leads to overutilization when the resource's price is viewed as zero.

Since the Cost of Obtaining More of Any Resource Is