If the government assigns private property rights to a common resource, then the
A) resource is under-utilized.
B) marginal private cost becomes equal to the marginal social cost.
C) government needs to set a quota to achieve efficiency.
D) None of the above answers is correct.

Question

Quizplus · Accepted Answer

Assigning private property rights to a common resource aligns the marginal private cost with the marginal social cost, as the owner will consider the full cost of resource use, leading to more efficient allocation.

If the Government Assigns Private Property Rights to a Common