When someone does not have to pay for a good it:
A) is rational to overconsume.
B) is irrational to overconsume.
C) is rational to underconsume.
D) means there is zero demand for the good.

Question

Quizplus · Accepted Answer

When someone does not have to pay for a good, it is rational to overconsume because the cost of the good to the individual is zero, so they have no incentive to limit their consumption. This is known as the "tragedy of the commons" situation, where individuals overuse a shared resource because they do not bear the full cost of their consumption.

When Someone Does Not Have to Pay for a Good