When a good is both rivalrous and nonexcludable:
A)the free rider problem may arise.
B)the tragedy of the commons may arise.
C)the good is likely a private good.
D)the good is likely an artificially scarce good.

Question

Quizplus · Accepted Answer

The tragedy of the commons may arise when a good is both rivalrous and nonexcludable. This means that any individual can use the good without being prevented, but as more people use the good, it becomes depleted or degraded, leading to a tragedy. The classic example is fishing in the ocean. Each fisherman can catch fish without being prevented, but as more fishermen join in, the fish population dwindles, making it harder for everyone to catch fish. This is an example of when regulation is necessary to prevent the tragedy of the commons.

When a Good Is Both Rivalrous and Nonexcludable