Why is the social marginal benefit of a common property smaller than the value that people,on average,receive from it?

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Quizplus · Accepted Answer

The social marginal benefit of a common property is smaller than the value people receive from it because when one additional person uses the property, it lowers the value that others receive from it. This phenomenon is called the "tragedy of the commons," where individuals act in their own self-interest and overuse a common property, leading to its depletion. As a result, the benefit to society as a whole ends up being less than the value that people, on average, receive from the property.

Why Is the Social Marginal Benefit of a Common Property