The absence of incentives to prevent the overuse of a common resource that arises when its users have no incentive to conserve it and use it sustainably is referred to as
A)unsustainable production.
B)sustainable production.
C)the tragedy of the commons.
D)rational ignorance.
E)irrational production.

Question

Quizplus · Accepted Answer

The tragedy of the commons refers to the depletion or degradation of a common resource due to the lack of individual incentives to conserve it. This occurs when the benefits of using the resource are private, while the costs of its overuse or depletion are shared by all users. Therefore, users are motivated to exploit the resource as much as possible, resulting in its depletion or destruction over time. The tragedy of the commons is a classic example of a market failure where the price mechanism alone fails to allocate resources efficiently.

The Absence of Incentives to Prevent the Overuse of a Common