When a production quota is used to remedy the problem of the commons, then
A) the production quota is set so that use of the resource is where marginal private benefit equals marginal private cost.
B) the production quota is set so that use of the resource is where marginal social benefit equals marginal private cost.
C) the market equilibrium, but not the efficient outcome, is achieved.
D) all users of the resource have an incentive to cheat on the quota quantity.
Correct Answer:
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Q199: The tragedy of commons is the
A) underuse
Q200: The tragedy of the commons is the
Q201: Q202: When producers are hard to monitor and Q203: The catch of American lobster off the Q205: For a common resource, the marginal social Q206: The problem of the commons arises because Q207: For a common resource, efficiency requires that Q208: For a common resource, the marginal private Q209: A common resource is used efficiently if
A)
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