Consumption of a common resource is inefficiently too because the marginal social cost of the resource is than the private marginal cost.
A)low; greater
B)low; less
C)high; greater
D)high; less

Question

Quizplus · Accepted Answer

When consumption of a common resource occurs, there is a negative externality imposed on society as a whole, which leads to the marginal social cost being higher than the private marginal cost. This leads to overconsumption and inefficiency in resource allocation. Therefore, the answer is C, with a high marginal social cost and greater private marginal cost.

Consumption of a Common Resource Is Inefficiently Too Because the Marginal