Market failure with common resources occurs because
A)the government imposes a negative externality on everyone's consumption of the resource.
B)common resources can become public goods through overuse.
C)consumption can be privately profitable even when it is socially undesirable.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Common resources are rivalrous but non-excludable, leading to overconsumption as individuals act in their own interest, resulting in socially undesirable outcomes like depletion or degradation.

Market Failure with Common Resources Occurs Because