Common resources are overused because
A)the marginal private benefit of operating a boat is the quantity of fish a boat can catch.
B)the social benefits outweigh the private benefits.
C)the marginal private benefit will always exceed the marginal social cost.
D)external costs are not considered.
E)social costs are controlled by production quotas.

Question

Quizplus · Accepted Answer

Common resources are overused because external costs, such as environmental degradation, are not considered by individuals, leading to overconsumption and depletion of the resource.

Common Resources Are Overused Because