Four friends decide to meet at a Chinese restaurant for dinner.They decide that each person will order an item from the menu and they will share all dishes.When the final bill for the meal comes, they decide that they will split the cost evenly among each of the people at the table.In this particular case, a Tragedy of the Commons problem is likely because:

Question

Quizplus · Accepted Answer

Each of the given statements is true in this scenario. A Tragedy of the Commons problem occurs when individuals take advantage of shared resources, leading to depletion or degradation of the resource. In this case, the shared resource is the food on the table, and each person has an incentive to eat more than their fair share, as it will not affect their individual cost. Additionally, there is a consumption externality associated with the food, where each person's consumption affects the overall availability of food for the group. Finally, when one person eats, they may not consider how their choices affect the rest of the group, leading to imbalanced consumption.

Four Friends Decide to Meet at a Chinese Restaurant for Dinner.They