For a common resource such as fish,the marginal private benefit ________ the marginal social benefit and the marginal private cost ________ the marginal social cost.
A) equals; is less than
B) is greater than; equals
C) equals; equals
D) is less than; is less than
E) is greater than; is greater than

Question

Quizplus · Accepted Answer

For a common resource like fish, the marginal private benefit equals the marginal social benefit because the benefit an individual receives from consuming the resource is the same as the benefit society receives. However, the marginal private cost is less than the marginal social cost because the individual does not bear the full cost of their consumption, which includes overfishing or depletion of the resource, affecting society as a whole.

For a Common Resource Such as Fish,the Marginal Private Benefit