A common resource is used efficiently if marginal social benefit equals marginal social cost.

Name: A common resource is used efficiently if marginal social benefit equals marginal social cost.
Brand: Quizplus
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Question

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Efficient use of a common resource occurs when the marginal social benefit (MSB) equals the marginal social cost (MSC), ensuring that resources are allocated optimally without overuse or underuse.

A Common Resource Is Used Efficiently If Marginal Social Benefit