If property rights are assigned to a common resource,then the
A)government needs to set an ITQ to achieve efficiency.
B)government needs to set a production quota to achieve efficiency.
C)more than the efficient quantity is produced.
D)marginal social benefit increases.
E)marginal private cost becomes equal to the marginal social cost.

Question

Quizplus · Accepted Answer

When property rights are assigned to a common resource, it aligns the incentives of the property owner with the social interest, making the marginal private cost equal to the marginal social cost, as the owner considers the broader implications of their resource use.

If Property Rights Are Assigned to a Common Resource,then the