The tragedy of the commons arises because ________ exceeds ________ when the resource is used.
A) marginal social benefit; marginal private benefit
B) marginal social cost; marginal private cost
C) marginal social benefit; marginal private cost
D) marginal private cost; marginal private benefit
E) marginal private cost; marginal social cost

Question

Quizplus · Accepted Answer

The tragedy of the commons occurs when individuals exploit a shared resource for their own benefit, without considering the negative effects on others. In this situation, the marginal social cost of using the resource (the cost to society as a whole) exceeds the marginal private cost of using the resource (the cost to the individual user). This leads to overuse and depletion of the resource, and ultimately a tragedy for everyone involved.

The Tragedy of the Commons Arises Because ________ Exceeds ________

The Tragedy of the Commons Arises Because Exceeds